Former NSW minister Stuart Ayres did not breach the Ministerial Code of Conduct in the process of appointing John Barilaro as the state's trade commissioner to the US, an independent review has found.
The Penrith MP resigned from cabinet and as the Liberal deputy leader six weeks ago after questions were raised in a separate review as about his involvement in the appointment of Mr Barilaro to the lucrative Americas trade posting.
The former deputy premier's appointment as Senior Trade and Investment Commissioner to the Americas is currently the subject of a parliamentary inquiry.
Today Mr Perrottet announced a review into Mr Ayres, conducted by Bruce McClintock SC, had cleared Mr Ayres.
"I do not consider that Mr Ayres breached the Ministerial Code of Conduct," Mr McClintock said in his report.
The McClintock review was a response to the findings by former public service commissioner Graeme Head into the controversial appointment of Mr Barilaro.
Mr Head found it "highly irregular" that Mr Ayres was used by the public servant running the process, Amy Brown, as an informal referee and concluded the process "did not occur at arm's length from the then Minister".
Mr McClintock said accepting Mr Head's finding that the process wasn't at arm's-length doesn't establish any breach of the Ministerial Code of Conduct.
"Mr Head's findings and my investigations establish that Mr Ayres did not give any direction relevantly to Ms Brown," Mr McClintock said.
The McClintock review found Mr Ayres and Mr Barilaro "were certainly not friends, nor had any form of personal relationship".
Mr Perrottet released a statement acknowledging the findings but did not address whether Mr Ayres will now be reinstated as a minister.
In a statement, Mr Ayres claimed that the Premier told him, "It is an emphatic exoneration".
"The report is unequivocally clear that I acted in accordance with the Ministerial Code of Conduct," he said.
"It makes it clear that I acted lawfully, honestly and had no conflict of interest."
Last month Treasurer Matt Kean was elected unopposed as Mr Ayres replacement as Deputy Liberal leader.
Mr Ayres's ministerial portfolios were added to Alister Henskens's responsibilities, which also elevated his status in cabinet.
Mr Perrottet last week refused to rule out Mr Ayres's potential return to the ministry.
Labor said the probe into Mr Ayres's involvement was narrow in scope and there would be concern in the community if he was reinstated.
"He may not have technically breached the code," Labor upper house MP Penny Sharpe said.
"But he's shown very poor judgment and the Premier has allowed him to do that all the way along."
