Corrective Services New South Wales found itself in damage control after a video, shot by an inmate in a cell at Sydney's Parklea Correctional Centre last year, was recently posted on YouTube.
As his cellmate looks on, the man is heard describing a facility he says is "ruining lives" using a phone he claims to have received from the prison's guards.
"I've got a mobile phone. Why have I got a mobile phone? Because screws are bringing mobile phones into the jail for money."
The inmate then films himself handling a knife and other small metallic objects he says can be used as weapons.
He demonstrates by slashing a piece of metal originally from a television across the wall of his cell.
"That's an example of what it can do to your throat."
The man then holds up a small bag.
"This is the drug ice. Why do I have it? Ha. Because I can."
Commissioner Peter Severin, from Corrective Services New South Wales, says he first saw the video on Friday.
It prompted a search at the prison the next day, where what he called "significant amounts of contraband" were recovered.
"I was appalled by what I saw, I was concerned about the attitude displayed in that video, I was concerned about the allegations made, and I was determined to take decisive action."
After meeting managers from the prison's private operator, GEO Group, Commissioner Severin announced a team from the public sector would be sent in to review the prison's operations.
"...that we see vast improvements, that we see every effort made to control things that come into the centre, that every effort is made to ensure prisoners are safe, staff are safe and the centre operates securely."
A police investigation is also underway.
Commissioner Severin wouldn't directly comment on the two men who feature in the video except to say one is on parole and the other is now at a different facility.
Stewart Little is the General Secretary of the Public Services Association, which is the union representing the state's prison officers.
He says Parklea has been "shrouded in secrecy" since it became privatised in 2009.
"It's a private prison that operates on a staffing profile of half that operating in the public system. It's no wonder we've seen an incident such as this."
New South Wales Opposition leader Luke Foley has been equally scathing.
"Our prisons are awash with dangerous weapons, hard drugs, mobile phones. This isn't funny, it's scary."
Commissioner Severin says GEO Group appeared apologetic during their meeting and has accepted full responsibility.
The review by Corrective Services is expected to take up to four weeks.
