The state's election watchdog has authorised the Crown Solicitor to prosecute 800 donors who made almost $8 million in political donations to candidates and parties for last year's NSW election but failed to declare them. 

The 800 include many of Australia's biggest companies, which have given between $1525 and $543,000 each - and they face fines of $11,000 for each offence. 

The action provides further evidence that the state's political donations reporting system is a shambles, as official records reveal that the Premier, Morris Iemma, has declared he got no donations for last year's election despite 26 donors - including developers and clubs - naming him as a recipient of almost $180,000 in their own declarations.  

800 Face Charges For Donations