Senator Arthur Sinodinos’ name will remain in an NSW Electoral Commission statement relating to a Liberal Party donations scandal, with the head of the commission also expecting the identities of secret benefactors to be revealed soon.

The commission is refusing to pay the Liberals more than $4.4 million until it reveals the secret donors who poured about $700,000 into the party’s coffers ahead of the 2011 state election.

Cabinet secretary Sinodinos was the party’s treasurer and finance director at the time and wanted references to himself in the commission’s statement removed, but its chair Keith Mason says it is “not prepared to retract its decision or any part of its statement”.

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The senator claimed he had no knowledge of what was done with the money, or of any prohibited donations being used in the 2011 NSW election campaign.

He told ABC Radio National 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.”

Barry O’Farrell won the 2011 NSW election in a landslide.

Mr Mason and the commission also expect the party to comply with the state’s electoral funding laws, following a public statement to that effect from NSW Liberal director Chris Stone.

“The commission expects the reportable political donations not yet disclosed in the party’s 2011 declaration will be disclosed promptly, which will allow a new decision about funding claims to be made,” Mr Mason said.

“This means the NSW Liberal Party needs to disclose all reportable political donations, including the names and other required information about donors under NSW election laws.”

Following the publication of the commission’s statement, Senator Sinodinos’ lawyers have sought a retraction of parts of its summary of facts, which the senator says used “loose language which could convey erroneous impressions”.

His lawyers said the commission’s conclusion that Senator Sinodinos knew, condoned or supported the disguising of donations was “manifestly wrong” and was formed without affording “procedural fairness” or “basic decency”.

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 (Independent Commission Against Corruption) 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.

Malcolm Turnbull has backed his embattled Cabinet minister. Photo: AAP

“I’ve been through this process. I’ve had my integrity and honesty tested in the [ICAC] and the commission made it clear all along that they were not alleging corruption on my part.”

In a response letter published on Thursday night, Mr Mason said the senator’s assertions about the language were wrong and “not in fact used in any of the documents published”.

The three-member electoral commission is due to meet again next Wednesday.

In September 2015, Senator Sinodinos was one of Malcolm Turnbull’s most outspoken supporters before his successful leadership coup against Tony Abbott.

Senator Sinodinos was promoted to Cabinet Secretary after the coup. He was removed from Tony Abbott’s front bench in 2014 during an ICAC investigation.

Earlier this week, Mr Turnbull backed his embattled Senator, saying he was a “very important member of the Cabinet”.

– with reporting by Joanna Woodburn, ABC