Janine Potter, a former employee of Peter Hammond, told a Wellington inquest yesterday that she did not have sex with the Masterton businessman before the death of his wife Maureen last year.
A signed police statement, in which Ms Potter - who worked at the couple's Eastwood Garage in Masterton -
admitted having sex with Mr Hammond was wrong, she said during cross-examination in the Coroner's Court.
Ms Potter was giving evidence at an inquest into the death of Mrs Hammond, aged 51, who drowned in the bath of her Masterton home.
Mr Hammond, 54, reported the discovery of his wife's body about 3 am on September 25 last year.
He said they had had a row about 11 pm in their upstairs bedroom. He then went to bed and she went downstairs to have a bath.
An upset Ms Potter, now a marketing administrator, said she had felt intimidated when making the statement to a detective soon after Mrs Hammond's death.
The detective did not listen to what she was saying.
Ms Potter said she and Mr Hammond had kissed once at his home, but the detective insisted on describing this in the statement as a sexual incident.
Although she pointed out the detective's mistake, he did not change the statement.
Ms Potter said that sometimes, after going out on tow jobs with Mr Hammond, he would kiss her on the cheek but they were never intimate.
In a sworn deposition to the court, Ms Potter said her friendship with Mr Hammond developed over time. She found it easy to talk to him.
Mr Hammond had said his marriage was "a cold relationship, with no love".
Ms Potter said Mrs Hammond had been suspicious that they were having an affair but Mr Hammond always told his wife it was not like that.
"I did hear that Maureen was making comments around town about Peter and me."
Once, Ms Potter asked Mrs Hammond to speak to "the boys" in the garage who had been implying that she and Mr Hammond were having an affair.
"Maureen refused to talk to them," she said, "and I was upset about this."
- NZPA