The NSW Treasury boss is calling for another, independent investigation into the controversial Transport Asset Holding Entity.
A parliamentary inquiry into the body resumed on Thursday, with Treasury secretary Paul Grimes being questioned a day after a "scathing" report from the auditor-general after just two weeks in the job.
Auditor-General Margaret Crawford will also appear at the inquiry on Thursday after delivering the audit of the state's finances and TAHE, the state-owned corporation with assets including trains, land, rail equipment and infrastructure.
Dr Grimes called for a new, independent investigation into the conduct at TAHE, despite the auditor-general's report finding the department was too reliant on external consultants.
"I believe it's appropriate to initiate an independent assessment within the department," he told the public accountability committee.
Ms Crawford's findings "warrant serious investigation" by an "independent assessor", but what the report found was confined to "processes" and further conclusions would need to be referred to a new, independent review, Dr Grimes said.
The call for a fresh review came after the auditor-general criticised Treasury's "undue reliance" on external consultants, creating risk that "agencies shop for opinions from multiple experts in order to receive advice that matches the outcome being sought".
Under questioning from opposition treasury spokesman Daniel Mookhey, Dr Grimes said the fresh review could be finished as early as possible but it would be "inappropriate" to give a time frame.
On claims treasury had been "obstructive and difficult" and released thousands of pages of documents hours before the auditor-general was due to sign her report, Treasury chief financial and operations officer Stewart Walters said documents were requested late in the audit process.
All documents requested had been provided, although Mr Walters suggested some were not "relevant".
Mr Stewart said he had not read the whole TAHE report but had "digested" as much as he could since it was released on Wednesday.
Treasury deputy secretary of policy and budget San Midha also told the inquiry he had not read the entire report.
Ms Crawford's report on the state's finances followed her delay in signing off on the accounts due to "significant uncertainties about TAHE".
The opposition and Greens labelled its findings "scathing".
Committee chair David Shoebridge said it "delivered a ruthlessly clinical assessment" and it was essential Thursday's hearing proceed so the committee "can put the Audit Office's damning conclusions to Treasury and Transport officials".
Premier Dominic Perrottet said he hadn't had time to read the auditor-general's report but had been given advice on it.
Auditor-general reports were generally scathing on government, he said.
"I absolutely stand by (TAHE)," the premier said on Thursday.
"It is the right approach in terms of the management of state transport assets.
"It's not something that the NSW Treasury dreamed up. It's something that has been led in other jurisdictions."
Mr Mookhey called on the premier to sack TAHE's board, saying the corporation had "burned a huge hole in NSW's finances".
"TAHE looms as the worst financial disaster to hit NSW in living memory," he said.
"The premier needs to get rid of those who were responsible."
