NSW Premier launches investigation into government grants amid pork barrelling claims

NSW Premier Dominic Perrottet has launched a review into the way the government hands out grants, in the wake of sensational allegations of pork barrelling, aired at the corruption commission.

The review will be led by the Department of Premier and Cabinet in partnership with the Productivity Commissioner, Peter Achterstraat AM, looking at whether public money is spent "fairly, effectively and transparently".

"I think it's important the public has confidence in the expenditure of taxpayer funds," he said.

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But he denied the review was a concession that grants examined in his predecessors ICAC hearing were not granted fairly, effectively or transparently.

"I will always look at reviewing government practices and guidelines and frameworks, that's part and parcel of good government," Mr Perrottet said.

"These guidelines haven't been looked at since 2010 so it's important we look at it, perhaps nothing will change."

The review comes just two days after the corruption watchdog wrapped up hearings into whether Gladys Berejiklian breached the public trust in awarding two grants to the seat of Wagga Wagga, once held by her secret lover Daryl Maguire.

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The commission was also played phone taps in which the then-Premier promised Mr Maguire she would "throw money" at Wagga, in order to win a by-election triggered by corruption allegations against him.

Last year, the then-Premier even defended the practice of pork barrelling, saying it is "not illegal", and that "all governments and oppositions" do it, to "curry favour" with voters.

The final report and any recommendations will be delivered to the Premier and Treasurer in April 2022.