Portuguese President Jorge Sampaio has said Macau's last governor, General Vasco Rocha Vieira, told him of the controversial plan to set up a foundation to promote cultural ties.
Yesterday's statement came days after a Lisbon newspaper reported Mr Sampaio had been unaware of the plan and was shocked to learn of it.
Last week, Macau Chief Executive Edmund Ho Hau-wah announced an independent panel would be set up to investigate the transfer of $50 million to the Lisbon-based foundation.
General Vieira was politically answerable to Mr Sampaio until the handover on December 19.
In a statement from the presidential office in Lisbon, a general welcome was given to moves contributing to the development of ties between Portugal and Macau.
But it also said it was up to the promoters of such initiatives - in this case General Vieira - to put them in 'concrete terms'.