Anne Fitzhenry told Coffs Harbour Coroner’s Court that Ms Kiely was about to go to the police with this information when ‘whoever it was got rid of Sue’.

Ms Kiely was 33 when she went missing from Bellingen on December 1, 1989. Her body has never been found and the cause of her death is unknown.

In Ms Fitzhenry’s 2004 police statement tendered to the court yesterday, she says Ms Kiely told her on the day of the funeral in 1989 of Darrel Drabsch: “It wasn’t an accident, it was murder. It wasn’t a case of the brakes failing.”

When told yesterday police had no evidence to suggest there was foul play in the death of Mr Drabsch, Ms Fitzhenry said: “I don’t believe it”.

Ms Fitzhenry’s statement also says the last time she saw Ms Kiely was three weeks before her disappearance when she visited with two males. Ms Kiely and the men were intoxicated.

“I recall both of the males said to Susan ‘I am going to kill you one day’. They said it more than once, quite a number of times,” the statement said.

When Ms Fitzhenry was asked yesterday what she thought had happened to Ms Kiely, she said: “Her dad was coming to see her on December 14 and she was so excited. I believe Sue has been murdered. There is no way Sue would ever leave Heidi (her youngest daughter living with her at the time) like that. She would never leave her kids like that.”

When asked about speculation Ms Kiely’s former husband, Robert Smith, may have been involved in her disappearance, Ms Fitzhenry replied: “I don’t think Robert has it in him to do anything”.

The court has been told Mr Smith had a motive to kill his former wife because of an impending financial settlement and she was seeking custody of their two daughters.

Ms Fitzhenry said the relationship between Ms Kiely and Mr Smith had started to deteriorate when they lost a baby.

“I never saw physical violence but Susan came to me. They had been arguing when police had been called,” she said.

“She needed to get away from the house. She would complain of being sore. I do know they would have a number of fights and she would come to me crying on a few occasions.

Ms Fitzhenry said Ms Kiely had just wanted to be a good mum for her children ‘and to go to Tupperware parties’.

The Coffs Harbour Coroner’s Court was also told yesterday there had been speculation at the time Ms Kiely had died from a drug overdose and the people with her had hidden or buried her body.

Ms Kiely was 33 when she went missing from Bellingen on December 1, 1989. Her body has never been found and the cause of her death is unknown.

Her former husband, Valla’s Robert Smith, is in court for the three-day hearing, as are their two daughters, Bianca and Heidi, and Ms Kiely’s brother, Gary.

Detective Senior Constable Kelly French told the inquest police suspected Mr Smith’s responsibility for Ms Kiely’s disappearance and death.

“Smith above all others had a motive. He was to have to sell his home, a house that he himself built and would have to provide his ex-wife with a substantial amount of money, about $35,000,” Const. French said.

“Kiely was also seeking full-time custody of both her children and history suggests that in most cases the mother would receive full custody of her children in a dispute.

“Smith had been violent to Kiely in the past and had made verbal threats against her life.

“My only concern with Smith’s involvement is that Heidi was left alone. If Smith was responsible for the disappearance of Kiely I find it hard to believe that he would have made no attempt to establish Heidi’s whereabouts and welfare after having not heard from her for a week.”

The court heard after the pair separated, Ms Kiely took her youngest daughter Heidi to live with her and Bianca remained in the care of her father, Mr Smith.

Ms Kiely, who moved to a small cottage on Kalang Road near Bellingen, was unemployed and receiving government benefits.

“From all accounts Kiely lived from day to day,” Const. French said.

“Kiely relied on hitch-hiking, neighbours and friends for transport. She was a regular cannabis user and had a drinking habit.

“She was well known at the local Federal Hotel in Bellingen, with her friends also abusing drugs and alcohol.”

On December 1, 1989, Ms Kiely saw young Heidi onto the school bus at 8.30am.

About 15 minutes later she was picked up hitch-hiking by local residents and was said to have been in ‘good spirits’. She told them she was on her way to town and planned to spend the day with friends.

She was dropped at the intersection of Church and Hyde streets about 9am but it is not known where she went immediately after.

Some time between 11am and 1.30pm she went to a friend’s place at 2 Short Street – now the YHA Backpackers – and stayed there for between 30 and 90 minutes. One of her friends believed she was on her way to the bank when she left. Another believed she was on her way to the bank and the pub.

Const. French said she has not been since leaving 2 Short Street and had not accessed her bank account.

She was reported missing by Mr Smith and another man on December 8, a week after she was last seen.

Const. French said Mr Smith later told police he had heard that Ms Kiely had overdosed on drugs while with friends and they had disposed of her body.

“It could be that Smith fabricated this information in an attempt to turn the attention of police away from himself and to others,” he said.

She told the inquest Gary Kiely was unhappy with how his sister’s disappearance had been investigated from the start. She also said some stages of the investigation seemed to ‘lack leadership, experience and direction’.

The inquest continues.

Just as the three-day probe in Coffs Harbour Coroner’s Court wound up yesterday afternoon, Deputy State Coroner Scott Mitchell dropped a bombshell by banning the publication of more evidence from the court-room saga.

The inquest – which has so far heard from 12 witnesses – will resume for another three days in December.

Detectives in the meantime will chase up fresh leads which have come to light from testimony this week.

Ms Kiely, a mother-of-two, was 33 when she went missing at Bellingen on December 1, 1989. Her body has never been found and the cause of her death is shrouded in mystery.

“I am ordering the prohibition of further publication of evidence in this matter,” Mr Mitchell said ahead of his return to Sydney.

“I want nothing published while my back is turned. I’m not going to be here, I’m away.

“I’m conscious we’re part-heard and there’s further evidence to come. There has been some publicity in the paper (the Advocate) and I don’t have any problems with that and I think that’s enough.”

Mr Mitchell made the order as Ms Kiely’s former husband Robert Smith – a key figure who has not had legal representation at the inquest – took the witness stand.

The court also heard yesterday from Ms Kiely’s brother Gary Kiely and Daniel Sharples, who knew Ms Kiely.

A letter from Heidi Smith, the younger daughter of Ms Kiely and Mr Smith, was also read out.