Ntla on Friday admitted in the Johannesburg Magistrates' Civil Court that she and her husband, Charity, were investigated by the anti-corruption unit.
Matlala's defence counsel, Harold Waner, put it to Ntla that the boxer went to the unit to complain about her alleged extortion by means of an out-of-court settlement document.
Ntla went to the civil court section claiming that Matlala breached a contract between them and still owed her R80 000.
The court heard that Baby Jake feared that their sexual encounter on 18 August 1998 would be leaked to the media and that his boxing career would be ruined.
Consequently, he decided that he would sign the initial document for R2 million damages drawn up by the gospel singer's husband.
In the second or third draft the amount was lowered to R250 000 of which Matlala paid R170 000 in two payments.
The gospel singer is now asking the court to award her the balance of R80 000. Should the court find the document unenforceable, she is asking for a general award of R80 000 in damages.
The boxer has still to take the stand and is only expected to do so when the lawsuit resumes on 17 January but his version has been placed before the court by Waner.
Waner on Friday argued that if the document had been genuine to "settle the matter in accordance with African culture" as claimed by Ntla, it would still be illegal since the documentation gave the impression of "extorting" the money.
He said Matlala either had to pay the couple or they would lay criminal charges of rape.
Regarding the money Ntla already received, she flatly refused to disclose in court what she spent it on. On a question by Waner she said: "I do not have to tell what I did with it".
She strongly denied a submission by Matlala's defence that during the times he met with her, he "interpreted your body language as a desire to foster a physical relationship".
She screamed "lies" when Waner put it to her that on the day of the alleged rape, when she went to view a townhouse owned by Matlala which was for rent, "he started cuddling you and you responded and at no stage did you object - you participated voluntarily".
The court has also to decide whether she was raped, or agreed to sex, and then cried rape to save her marriage. - Sapa