RSL NSW chief defends Anzac attendance

The embattled head of RSL NSW has defended his decision to take part in Sydney's Anzac Day commemorations amid police investigations, saying branch members had wanted him there.

Executive members at the scandal-plagued branch had been asked by the state government to step aside from their official duties on Anzac Day due to the police investigation into financial misconduct allegations.

RSL NSW president John Haines was however among several dignitaries who laid floral tributes at the Cenotaph in Martin Place during Tuesday's dawn service. He also took part in the march that followed.

Mr Haines says his decision to defy the request from Veterans' Affairs Minister David Elliot was necessary.

"I spoke to many, many veterans - sub-branch members - and they insisted (I attend)," he told AAP after the march.

"They'd be very disappointed, very critical of me if I didn't lead the state council in the march".

Mr Haines insists he was doing nothing wrong by taking part in the commemorations.

"I make the point that I'm carrying out my duties and my obligations under our constitution and by-laws," he said.

In February, the branch's entire council was stood aside as the police investigation got under way.

The RSL national board has ordered its own inquiry into the allegations.

Mr Elliott says Mr Haines' decision is "disappointing".

"My view is that anybody that is currently under investigation, anybody that has stood aside from their role in the leadership positions of the RSL, should not be in the march," he said.