Liberal Senator Arthur Sinodinos says he had no knowledge of prohibited donations being used in the New South Wales 2011 election campaign.

It is alleged the party's fundraising body, the Free Enterprise Foundation, funnelled hundreds of thousands of dollars from property developers to the state Liberals in 2011.

Senator Sinodinos was the NSW Liberal Party treasurer at the time and said he had no knowledge of what was done with that money.

He said he had earlier distributed information to staff that certain political donations could not be used by the New South Wales branch.

"What we did was to say, in the context of lists like that, that obviously nobody would be approached where this would involve breaking the law," Senator Sinodinos told ABC Radio National.

"This was the clear premise on which the whole of our activities were pursued."

Senator Sinodinos also defended his actions while he was the NSW Liberal Party treasurer.

The NSW Electoral Commission named him in a statement of facts relating to its decision to withhold $4.4 million in public funding from the NSW Liberal Party because it failed to disclose the identity of major political donors in its 2011 declaration.

Senator Sinodinos said there were errors in the statement and the Electoral Commission had taken things out of context.

"It appears on transcripts of ICAC selectively used to make a particular point without the opportunity for people like me who are affected to make their part of the case," he said.

"I've been through this process. I've had my integrity and honesty tested in the [Independent Commission Against Corruption] and the commission made it clear all along that they were not alleging corruption on my part."