Mr Baird, the former member for Mr Morrison's seat of Cook, says he never heard any racist comments, or allegations of bullying or dirty tricks.
"I'm not aware of any and I was as close as anybody to it," Mr Baird told the ABC.
Mr Baird says that while he is a friend of Mr Morrison, he is trying to be objective and honest.
"I don't agree with all that has happened in terms of the government," he said.
"But yes, I am a friend, and I'm doing it because this is the truth. I am not about spin, I'm just stating it like it is, and to claim as others have that Scott is racist and a bully I think is wrong."
Mr Morrison has strenuously denied claims he told party members they couldn't have a Lebanese person as a candidate for the NSW seat of Cook following the 2005 Cronulla riots.
Two Liberals involved in the preselection process - including challenger Michael Towke - have signed statutory declarations saying Mr Morrison made the comments, according to reports.
Mr Morrison has described the allegations as "malicious and bitter slurs" since revealing he is prepared to sign his own statutory declaration to combat the claims.
Mr Towke initially won the 2007 preselection battle with more than 80 votes to Mr Morrison's eight - although Mr Morrison was then selected after a second ballot following media leaks about Mr Towke.
Mr Towke successfully sued a media outlet for defamation and was cleared of any wrongdoing by the NSW Liberals.
Mr Baird said the allegations made by Mr Towke came after he was "ceremoniously dumped as the candidate".
"He dumped some 450 members into one branch not that long before the preselection and that's called outright stacking, whether it's Labor or Liberal," he said, referring to usual branch sizes of 30 to 40 members.
"There was an investigation of some of those who were put in and I won't go into the details, but it decided to that he should be just disendorsed, so obviously he has a few bones (to pick) in terms of the preselection."
Senior Labor MP Michelle Rowland says it's important to note that the attacks on the prime minister's character were coming from his own side.
"It seems to be a pattern of behaviour that the people who seem to know Scott Morrison the best like him the least," she told Sky News.
"I have no special insights into the internal factional wars going on within the Liberal Party, where they are completely focused on themselves rather than Australians, but let's be very clear - there is a clear pattern of Scott Morrison not being trustworthy."
The federal Liberal body has overridden the state division to install a number of candidates for NSW seats ahead of the federal election, which is expected to be called this week.
A court challenge has been launched over the intervention, with a decision expected as early as Monday.
Senior government minister and the Nationals deputy leader David Littleproud says while the NSW Liberal division needed to address its problems, voters were more focused on what policy both sides were putting forward.
"As a Queenslander, we don't we don't take kindly to other states telling us what to do so I'll let the NSW Liberal Party sort their own stuff out for themselves," he told AAP.
"But even though it's messy, I don't think people are looking at that. They're actually looking at the policy and they're running the ruler over both in who's best to protect their job and who's best to keep them safe."
