Garry Edwards, the latest NSW Government MP to be implicated in illegal campaign funding in the Hunter region, says he will stand aside from the parliamentary Liberal Party and sit on the crossbench.

Mr Edwards made the announcement after Newcastle Lord Mayor Jeff McCloy told the Independent Commission Against Corruption (ICAC) he gave Mr Edwards cash for his campaign before the last election.

The Member for Swansea said in a statement he had told the Premier of his decision and he looked forward to clearing his name.

He is the eighth member of the NSW Government to step aside or resign as a result of the ICAC's Operation Spicer.

Mr McCloy today told the ICAC that people had approached him all the time for money and he felt like a "walking ATM".

The inquiry heard Mr McCloy received a phone call from Mr Edwards when he was at the 16-footer sailing club at Belmont, which is near his home.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Listen Duration: 5 minutes 37 seconds 5 m Listen to Ashley Hall's report Download 10.3 MB

He said Mr Edwards asked if he could come and see him, and he said "come up now".

Mr McCloy said he could not recall the exact details of the meeting.

He said he gave Mr Edwards what he had in cash "towards his campaign".

"It was about $1,500 to $1,800, whatever was in my wallet," he said.

Mr McCloy confirmed he gave $10,000 each to the former member for Charlestown, Andrew Cornwell, the former member for Newcastle, Tim Owen, and Mr Owen's campaign manager, Hugh Thomson.

He said he could not remember all the donations he made at a private hearing earlier this year at the ICAC because he gave away $6,500 a week.

"Jeff McCloy is an individual, not a property developer, because he doesn't make development applications," Mr McCloy said.

"I wished to remain anonymous and that little plan has not worked out too well."

Counsel assisting Geoffrey Watson SC asked Mr McCloy if he was denying he was a property developer.

"There are two senses of it," Mr McCloy replied.

McCloy denies trying to bribe future state politicians

Mr Watson then asked how he could think his donations were legal.

"What is legal about you sitting in a Bentley and passing over $10,000?" Mr Watson said.

Newcastle Lord Mayor and property developer Jeff McCloy arrives at ICAC. ( AAP: Paul Miller )

Mr McCloy denied he was trying to bribe future state politicians and said the assertion was "absolute rubbish".

In a media statement tendered to the ICAC, Mr McCloy also claimed he lived by the words of Mother Theresa: "Do it anyway".

"What did Mother Theresa have to do with $10,000 being passed over in a Bentley?" Mr Watson asked.

Mr McCloy repeatedly said he did not know exactly who set up the meetings with Mr Cornwell, Mr Owen and Mr Thomson.

The ICAC had earlier been told the meetings were set up by former police minister Mike Gallacher.

Mr McCloy told the commission he had known Mr Gallacher for a long time.

However, he said it was only a possibility Mr Gallacher could have set the meetings up as it was four years ago and "Newcastle's a big town".

McCloy claims he told Owen to tell ICAC the truth

Mr McCloy said he wanted to help Mr Owen because he thought Newcastle would fare better under a Liberal member.

He said he gave $10,000 each to Mr Thomson and another $10,000 to Mr Owen after a meeting in February in relation to the Newcastle MP's campaign funding.

Mr Owen first told the ICAC he gave the $10,000 back to Mr McCloy, but later said he kept it for his campaign.

He also admitted he met with Mr McCloy on Sunday to discuss what Mr McCloy would tell ICAC.

Mr McCloy told ICAC on Thursday he told Mr Owen to tell the truth to the commission.

"Don't roll the dice, just don't roll the dice," Mr McCloy said he advised him.

He said they had talked on the phone once since, when Mr Owen was incredibly stressed.

McCloy said he told Mr Owen to straighten himself up and get on with his life.

He also confirmed that fellow Hunter developer Hilton Grugeon was at the meeting about Mr Owen's campaign funding and also agreed to donate $10,000.

Developer 'cannot recall' campaign funding meeting

Mr Grugeon told the commission earlier on Thursday that he could not recall attending the meeting.

After repeated questioning by the counsel assisting, Mr Grugeon maintained he could not recall it.

He said he knew it was illegal for political developers to donate money to political campaigns.

Property developer Hilton Grugeon arrives at ICAC to give evidence at Operation Spicer. ( AAP: Paul Miller )

Mr Grugeon said Mr Thomson approached him about paying for a media consultant and said it was legal because it was not a donation.

Becoming frustrated with Mr Grugeon after repeatedly grilling him over what he knew, Mr Watson accused him of not telling the truth.

"You've been pulling our leg and what you've been saying today is a load of rubbish, isn't it," he said.

"No," Mr Grugeon said.

He said he had no memory of Mr Gallacher approaching him to support Mr Owen's campaign.

Earlier in the hearing Mr Cornwell told ICAC he accepted a cheque from Mr Grugeon for an overvalued painting.

The painting was donated to Maitland hospital, which is now selling it on eBay to raise money.

Both Mr Cornwell and Mr Owen resigned from Parliament this week after the revelations at ICAC.

Editor’s note: (August 15) The ABC has removed a reference to the NSW MP, Robyn Parker, from its online coverage of the ICAC proceedings on Thursday, August 14. The original story suggested the Newcastle Mayor, Jeff McCloy could not remember whether he had contributed to Ms Parker’s campaign. Mr McCloy actually stated that his staff had searched the records and found no evidence of any contribution.