A woman who spoke to police more than two decades ago about an accused murderer in regional Victoria, denies she lied in order to claim a $50,000 reward.
Simmone Stamolos told the Supreme Court of Victoria on Tuesday via video link that her boyfriend in the early to mid-1990s was friends with accused killer Karl Michael Hague.
Hague is accused of fatally stabbing 16-year-old Ricky Balcombe at Geelong in May 1995 at the Market Square Shopping Centre.
There was a $50,000 police reward offered for information leading to a conviction.
Ms Stamolos told the court that after the boy was murdered, Hague told her: "That's the little c*** that knifed my car."
She said she asked Hague if he killed Ricky.
"(He said) why would he do it and end up in prison?" Ms Stamolos said.
She also told the court she saw Hague had a jacket in the top shelf of his wardrobe - similar to that worn by whoever killed the boy.
"I could see it sticking out," she said.
Ms Stamolos rejected an assertion by Hague's barrister Felicity Gerry QC that she had lied about the jacket in order to claim a $50,000 reward announced by Victoria Police that September.
The court was told the Victorian government approved a $1 million reward for information in April 2017.
A witness statement by Joan Menzies dating back to May 1995 was read to the court, in which she described seeing a man with a "big knife" stab the boy she thought was Ricky, in the back.
"He said: 'Come here you little c***'," Mrs Menzies said in her statement.
"It looked like a butcher's knife.
"It was like he lunged at him and stabbed from behind.
"He (Ricky) ran a few steps and then he just fell."
The court was played a 2017 Seven Network interview conducted with Hague, in which he said he was riding from his mum's house on a pushbike at the time of the murder.
The hearing continues.