Craig Baumann has joined the long list of Liberal MPs to be sidelined over the NSW donations scandal.
The Port Stephens MP became the focus of the Independent Commission Against Corruption's (ICAC) final hearing day of Operation Spicer on Friday over allegations he hid donations he received from two developers.
Following Mr Baumann's appearance at the commission, he was asked by reporters if he would be stepping aside.
"Not any time soon," he said.
But NSW Premier Mike Baird was having none of it.
He urged Mr Baumann to step aside and the beleaguered MP fell on his sword a few hours later.
"I am not prepared to allow this to become a distraction for the party or the government," Mr Baird said in a statement.
Mr Baumann joins nine other Liberals to step aside from the party, two of whom, Tim Owen and Andrew Cornwell, have quit parliament altogether.
Commissioner Megan Latham earlier widened the ICAC's investigation to look at whether Mr Baumann and his accountant Vincent Heufel "agreed to make false or inaccurate electoral funding disclosures in 2007 and 2011".
The ICAC was also looking into whether the disclosures were made "with the purpose of concealing benefits already exchanged or to be exchanged with, amongst others, (property developers) Jeff McCloy and Hilton Grugeon".
Mr Baumann admitted to not disclosing a $32,000 payment from Mr McCloy and a $47,000 donation from Mr Grugeon in his 2007 election funding disclosures but denied doing them any favours.
The money was donated to Mr Baumann's business Mambare, which forwarded the total amount to the NSW Liberal Party, without saying where it came from.
Mr Baumann admitted to directing a "sham invoice" be issued from his company Valley Homes to Mr McCloy over the $32,000 payment.
He also admitted to "inadvertently" making a "dishonest declaration".
The MP agreed that both developers stood to make money from favourable decisions on a planned development.
Mr Baumann admitted to voting for Mr McCloy's and Mr Grugeon's planned development rezoning while he was on the council but denied doing any favours for the two developers.
The commission heard allegations Mr Heufel made a $100,000 donation to the Liberal Party so Mr Baumann would have to pay less tax.
Mr Baumann has also relinquished the position of parliamentary secretary for regional planning.
He denies this allegation and says the money was linked to a property he was building for Mr Heufel.
Speaking to reporters outside the commission, Mr Baumann apologised for being "foolish enough" to "muck up" a couple of disclosures.
A final report on Operation Spicer is expected to be released in January, two months before the NSW general election.
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