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When Keneally said "of course" she could not remember every single phone call she had while premier, Littlemore asked why she recalled that particular one with Mr Obeid.
Obeid said he had no knowledge of an arrangement to buy $3m worth of shares in AWH which could have potentially made the family between $60m and $100m according to different witnesses who have appeared at the commission.
Justice David Davies also ordered Obeid to stay away from a crown witness, the former NSW Maritime boss Steve Dunn.
Obeid said he arranged meetings with ministers for AWH chief executive Nick Di Girolamo but did not advocate for a positive outcome for AWH.
He said the quotes in the book were 100% accurate but he may have unintentionally given the impression Keneally had a unique relationship with Obeid.
"There was a group of us who had dinner together on a Tuesday night [at parliament] … I was sitting beside Mr Obeid at the time and was told 'Keep away from Ms Schott – they're coming after her,' " Costa said.
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The Liberal senator Arthur Sinodinos is to appear before the New South Wales corruption watchdog on Thursday to give evidence about his role at an Obeid-linked company allegedly used to funnel taxpayers' money to the Liberal party.
Earlier on Thursday, Eddie Obeid told ABC radio there was only a 1% chance he would be prosecuted over his conduct, and that the "Hollywood-style" Icac report was "all about grabbing media headlines".
The ABC's 7.30 program raised the conflict of interest question by pointing out that Grayson had a one-sixth shareholding in Gasfields Water and Waste Services, a company also associated with the son of corrupt NSW Labor politician Eddie Obeid, Eddie Obeid Jnr.
Gardner Brook, a former Lehman Brothers investment banker and associate of Moses Obeid, took the stand on Tuesday and revealed he had been told the family could make more than $100m if the deal went through.
The former Labor powerbroker Eddie Obeid labelled Icac a "sham" and a "star chamber" after it handed down three reports recommending the director of public prosecutions consider pressing criminal charges against him.
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