Radio New Zealand's former managing editor of news has agreed in cross-examination that then chief executive Sharon Crosbie praised the standard of news produced under her leadership.
Lynne Snowdon is challenging her dismissal from the public broadcaster in the Employment Court.
She took sick leave in 2003 after a disagreement with Ms Crosbie and did not return to work.
Ms Snowdon told the court on Wednesday that Ms Crosbie had bullied her and set her up for dismissal.
In response to questions from Radio New Zealand's lawyer on Thursday, Ms Snowdon denied she had a problem with the features department being favoured over the news division when it came to funding.
However, she said money which New Zealand on Air had provided for the news service was given to other parts of Radio New Zealand.
In cross-examination Ms Snowdon said the company took $200,000 out of her personnel budget to cover deficits elsewhere in the organisation and she felt she was made a scapegoat for those deficits.
Ms Snowdon said she paid forensic accountants to look at the books and what they found was, in her words, disgusting and appalling.
Witnesses for Radio New Zealand gave evidence that Ms Snowdon was offered help with financial management, but she told the court on Thursday that she could not remember that happening.
