Federal Liberal MP Karen McNamara and a senior figure in the state branch of the Liberal Party have been drawn into a widening corruption scandal after an inquiry heard Ms McNamara did not declare tens of thousands of dollars in donations to the last state election campaign.

Hollie Hughes, a member of the NSW Liberal Party state executive, told the Independent Commission Against Corruption on Friday that Ms McNamara had boasted that she had raised $80,000 to $100,000 for Central Coast MP Darren Webber's successful 2011 campaign for the state seat of Wyong.

State executive: Hollie Hughes. Credit:Dean Sewell

Ms Hughes thought the figure was "extraordinarily high" and, when she checked with Liberal Party head office, she was told that just $11,082 had been declared to the NSW Election Funding Authority. Ms McNamara, who was Mr Webber's campaign manager before she entered federal parliament, signed the declaration in August 2011.

Ms Hughes gave evidence that Simon McInnes, now the finance director of the NSW Liberal Party, told her he would not have given her the $11,082 figure if he had known she would later use it to challenge Ms McNamara during her preselection for the federal seat of Dobell.