There are reports that Ms Keneally's preferences
in yesterday's emergency cabinet reshuffle were
overruled by faction leaders Joe Tripodi and Eddie Obeid.
The New South Wales Premier has apologised to former transport minister David Campbell for describing the situation that led to his resignation as "unforgivable".
David Campbell resigned on Thursday night shortly before commercial television aired footage of him leaving a gay sex club in Sydney's eastern suburbs.
At a media conference yesterday, Kristina Keneally said it was "unforgivable" that Mr Campbell had lived with the secret and misrepresented himself to his wife, community and colleagues.
But today at a Sydney Writer's Festival forum on forgiveness, she apologised to Mr Campbell for using that word.
"It is not unforgivable what he did," she said.
"It is unacceptable to lie but it is equally unacceptable to live in a community where your sexuality is not accepted.
"That is an extraordinarily difficult circumstance that he was in."
Mr Campbell's resignation forced Ms Keneally to make emergency cabinet reshuffles, which have led to criticisms she is at the mercy of Labor powerbrokers.
There are reports that Ms Keneally's preferences in yesterday's emergency cabinet reshuffle were overruled by faction leaders Joe Tripodi and Eddie Obeid.
Yesterday, John Robertson was sworn in as Roads Minister, and David Borger has taken on the transport portfolio.
Paul Lynch has taken over Mr Robertson's responsibilities for Industrial Relations, Commerce and Energy and Public Sector Reform, and Peter Primrose has moved to Ageing and Disability Services.
The Minister for Environment and Climate Change Frank Sartor was reportedly the Premier's first preference to become the new Transport Minister.
But he says those reports are false.
"I was not seeking to do transport in fact the opposite is true," he said.
"I've got a lot of unfinished business in environment - that's where I wanted to stay.
"She's respected my wishes, it's as simple as that. There was no other conspiracy about this matter."
The New South Wales Opposition Leader, Barry O'Farrell, says there have been too many reshuffles within the party which is the reason nothing gets done.
"Every time there is a ministerial reshuffle, of which there have been too many under Labor, it sees decisions deferred, it sees decisions delayed, it sees services that should have been delivered to areas like Penrith and other parts of the state, not delivered," he said.
"That's the public cost of the scandals, the reshuffles that surround this state Labor Government."
Mr Robertson is planning to mark his first day as Transport minister by catching a train in inner Sydney later this morning.
He is expected to ride from Redfern to Central station where he will face the media.
