Port Stephens MP Craig Baumann delivered the broadside at the Independent Commission Against Corruption during a statement to the NSW Parliament on Tuesday.

Mr Baumann quit the parliamentary Liberal party and moved to the cross bench in September after the ICAC heard that he took $79,684 in secret donations from developers Jeff McCloy and Hilton Grugeon before the 2007 election. It heard he hid payments by issuing "sham" invoices.

Mr Baumann, the former mayor of Port Stephens, agreed that the reason for hiding the developers' identities - despite them being legal donors at the time - was that both could have profited from a proposed development at Wallalong, near Maitland.

On Tuesday Mr Baumann, who remains the preselected Liberal candidate for Port Stephens at next year's state election, noted he was elected to Port Stephens council in 1987 "with an anti-corruption agenda".

"I detest corruption and find myself gutted to have the current accusations around me and my colleagues," he told parliament.

"When inherently unfair and bad legislation is introduced and all and sundry are cross-examined in open session without any procedural fairness I wonder what message is being sent to good, talented, community-minded people who are interested in representing their peers."

Mr Baumann said he "did not receive one cent from banned donors".

"I made a mistake with one declaration that did not influence or affect the result of the 2007 nor the 2011 election," he said.

"I've apologised for that and suffered the public humiliation that only a star chamber and voyeuristic media can achieve."

Mr Baumann, Londonderry MP Bart Bassett and Swansea MP Garry Edwards were given until 5pm on Monday to write to Liberal party director Tony Nutt clarifying whether or not they have broken state or federal laws.

Their letters have been referred to Liberal party legal advisers. However, Mr Nutt has signalled that if the MPs do not resign from the Liberal party they are likely to be expelled before the end of November.

However, all three have indicated they have no intention of quitting before the ICAC hands down its inquiry report in January.

Mr Baumann appeared to signal he would consider running as an independent if expelled from the Liberal party.

"I will consider my options when the commissioner releases her final report in January," he said.

Mr Edwards, like Mr Baumann, is the endorsed candidate for his seat at the state election next March. Mr Bassett is seeking preselection for the seat of Riverstone.

The ICAC heard allegations a company associated with coal mogul Nathan Tinkler made an illegal donation of $18,000 for Mr Bassett's campaign in December 2010, while Mr McCloy admitted he gave cash in an envelope to Mr Edwards before the 2011 election.