But Mr McHerron said suspicions didn't need to be fair, well founded or accurate.
Furthermore, the terms of reference for the investigation did not permit findings based on suspicion he argued.
Ms Rebstock was required to investigate and report on the relevant facts of the matter, "she was not required to report on her suspicions".
But Justice Rhys Harrison questioned whether there was anything wrong with Ms Rebstock setting out accepted facts and making a finding based on them.
Justice Mark O'Regan said the report contained "ample evidence to make the finding she made".
To say the facts set out in the report didn't support Ms Rebstock's suspicion was "clearly not true".
"She's found that there are facts that lead to a conclusion, that it's a matter of strong suspicion," Justice O'Regan said.
Former Foreign Affairs Minister Phil Goff caused great embarrassment to the Government when he revealed aspects of the controversial restructuring plans contained in the Cabinet papers in Parliament last year.
Lawyers for the Crown will give their submissions this afternoon.