The head of Investment NSW maintains it was ultimately her decision to appoint John Barilaro to an overseas trade role but says she was nervous about the potential political fallout.
Amy Brown, the Investment NSW chief executive and secretary of the Department of Enterprise, Investment and Trade, has told a parliamentary inquiry she had reservations about appointing the former deputy premier.
"I was nervous about it because he had some history with the NSW government that may make it difficult for him to take up the role without media and public controversy," Ms Brown said on Wednesday.
She was influenced "to a degree" when cabinet changed the hiring process to make it a ministerial appointment, and did not want to choose a candidate who would be replaced at the whim of the government.
"It did not amount to undue influence because at all times I felt that the decision was mine," Ms Brown said.
When asked if she had a conflict of interest and may have wanted to prefer Mr Barilaro, she replied, stifling a laugh: "I think it's fair to say I did not want to prefer Mr Barilaro in the recruitment process."
Ms Brown said she also did not want to be the only one supporting Mr Barilaro's appointment.
"There was a high degree of interest in the outcome of the process, and I didn't want to necessarily stand behind it alone," she said.
Ms Brown told the inquiry she approached Department of Premier and Cabinet secretary Michael Coutts-Trotter to inform him of Mr Barilaro's application and eventual selection.
"I said something along the lines of 'Mr Barilaro is the successful candidate ... I'm nervous about it, I wonder if you might want to check in with the premier'," she said.
The DPC secretary told her to leave the issue with him.
"He didn't say what he was going to do necessarily," she said, noting she also did not receive a substantial answer.
"It was more, 'I'm not going to tell you anything to stop it going ahead,' like he was resigned to it," Ms Brown said.
Her explanation for changes to a report by a recruitment firm that increased Mr Barilaro's rating was that the original report was inaccurate and unsolicited.
She said it did not reflect the discussions of the selection panel, who had expressed concern the higher ranked candidate had not lived in NSW for a decade and lacked experience working with the government.
Ms Brown faced the hearing shortly after Premier Dominic Perrottet announced Stuart Ayres had quit the ministry and the Liberal deputy leader role, following a draft of the government's review into Mr Barilaro's appointment.
"The issues in the review go directly to the engagement of Mr Ayres with a department secretary in respect to the recruitment process," the premier said.
"It raises questions in respect to the ministerial code of conduct."
Mr Ayres said he did not believe he had breached the code but agreed it was "important that this matter is investigated appropriately".
Mr Ayres was more involved in the hiring of his former cabinet colleague than he had previously indicated.
"The review clearly demonstrates that the process was not at arm's length," Mr Perrottet said.
Ms Brown agreed.
"He was not at arm's length from the process, there were multiple intersection points," she said.
Mr Ayres also sent a copy of the job ad to Mr Barilaro after he texted him expressing an interest in the role.
"He (Ayres) said 'John Barilaro's interested in applying, I've forwarded him the job ad like I would anyone else'," Ms Brown said.
Many others had expressed an interest in the role, however Mr Ayres said on Tuesday he did not send anyone else the job ad.
Mr Barilaro stood down from the job less than two weeks after his appointment was announced in June, saying it had become untenable.
