NSW Premier Gladys Berejiklian has backed her Treasurer Dominic Perrottet after an audit was launched into his office over the iCare scandal.
The Treasurer's Chief of Staff quit on Friday after it was revealed two of Mr Perrottet's ministerial staff were working in his office on secondment from iCare.
The state-owned insurer was paying their salary and it wasn't properly documented, as required by regulations.
An audit will now be conducted into Mr Perrottet's office by Treasury Secretary Michael Pratt.
"I do have confidence in the Treasurer," Ms Berejiklian said today.
"Obviously, those full requirements weren't taken which is why the Chief of Staff of that office's resignation was accepted."
She also absolved herself and her office from any responsibility in relation to the secondments.
"I can confirm those arrangements were made directly between the Treasurer's office and iCare," the Premier said.
The Opposition has raised concerns about the Treasury Secretary conducting the review, because Mr Pratt was previously the Deputy Chair of iCare.
"It's a sham inquiry, into a sham arrangement," the Opposition's spokesman for finance Daniel Mookhey said.
"The person who is now investigating the Treasurer's office himself is entitled to be asked questions."
The NSW Upper House has also been recalled, after the Opposition and crossbench united to force the Legislative Council to sit at the end of the month.
The Opposition and crossbench MPs will use the recall to call for all documents from the Treasurer's office relating to iCare, which the Treasurer oversees.
A statutory review has also been brought forward to look into the finances and management of iCare.
A joint investigation from the ABC's Four Corners and the Sydney Morning Herald revealed hundreds of millions of dollars in losses by iCare and systemic underpayment of workers.
The Treasurer initially supported iCare's leadership team but then ordered the review after the CEO John Nagle quit over conflict of interest issues.
