The NSW finance minister, Greg Pearce, is facing dismissal from cabinet after Premier Barry O'Farrell ordered an inquiry into a possible rort of travel expenses.
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Mr O'Farrell has asked the head of his department, Chris Eccles, to examine claims Mr Pearce made for flights to Canberra on Monday, a day after he was threatened with the sack over allegedly being drunk in parliament last week.
Mr Pearce said he went to Canberra to inspect Tralee, a housing development planned near Canberra airport. But his office told the media he was "unwell" on the same day and that it was a private trip.
It later emerged Mr Pearce had travelled to Canberra to attend the launch of a lobbying firm owned by the NSW Liberal powerbroker Michael Photios, although he did not attend the event.
However, it has been reported that flights and accommodation for Mr Pearce were booked by the government.
Mr O'Farrell, who is in China on a trade mission has now asked Mr Eccles to examine whether Mr Pearce had breached ministerial travel guidelines in making the trip.
"On Tuesday night I was advised of a possible breach of the ministerial travel guidelines by the minister for finance and services and determined the director general of the department of premier and cabinet should investigate it further," Mr O'Farrell said in a statement.
He said Mr Eccles would investigate the matter upon returning from personal bereavement leave on June 11.
"Specifically he has been asked to establish the facts, determine the nature of any breach and make recommendations in relation to the guidelines," Mr O'Farrell said.
"Following receipt of the report, I will discuss the matter with the minister".
Mr Pearce was reportedly so inebriated during a marathon sitting of the upper house to debate changes to victims compensation laws, which concluded at about 4.30am last Thursday, he had to be excused from Parliament.
Mr Pearce has denied he was drunk, claiming to have had only "two or three drinks" at a Liberal party function on Wednesday evening and that he went home because he was "exhausted".
But in a statement, Mr O'Farrell said he had warned Mr Pearce he would be sacked from the ministry if he repeated the behaviour.
"Politicians are expected to meet community expectations, including in the workplace," Mr O'Farrell said. "I've made it clear to Mr Pearce if this behaviour is repeated, he won't be part of my team."
