Liberal MPs face expulsion amid ICAC probe over donation rorting

Three sidelined NSW Liberal MPs face possible expulsion from the party over allegations of donation rorting.

State party director Tony Nutt is demanding Bart Bassett, Garry Edwards and Craig Baumann prove they haven't broken the law after the beleaguered MPs appeared before the Independent Commission Against Corruption earlier this year.

While the trio have stepped aside from the parliamentary Liberal Party, they remain members of the broader organisation.

Mr Edwards and Mr Baumann are endorsed Liberal candidates to recontest their Swansea and Port Stephens seats at the March election, while Mr Bassett is seeking Liberal preselection in Riverstone.

Mr Nutt on Tuesday wrote to the MPs asking they provide any information "to clarify whether or not they may have broken state or federal laws".

The state Liberal director has also informed Premier Mike Baird of the move, saying the members have until November 17 to respond.

"As you are aware ... the constitution of the party in NSW provides that the state director may suspend or expel a member whose conduct may constitute an offence under state or federal law," Mr Nutt wrote to the premier.

It's understood Mr Nutt had previously asked the MPs to reconsider their futures but they refused to budge.

ICAC has heard allegations Mr Baumann hid $79,000 of donations from two developers during his 2007 election campaign.

The corruption watchdog is looking at whether the former Port Stephens mayor exchanged benefits with the donors.

Mr Bassett is alleged to have solicited a campaign donation from Nathan Tinkler's Buildev in exchange for favours on a housing project.

Mr Edwards faces claims he received about $1500 from banned property donor Jeff McCloy in the lead-up to the 2011 election.

All three MPs deny any wrongdoing.

ICAC probes have so far relegated eight Liberals to the cross benches and resulted in Tim Owen and Andrew Cornwell quitting politics.