Insp Paiva told how tearful Kate told him about her dream in a phone call two months after Maddie vanished - and asked cops to search the hill she had "seen".
He said: "She gave me the impression she thought Madeleine was dead." He added police combed the area but found nothing.
Quizzed by the McCanns' lawyer Isabel Duarte, Paiva admitted Kate told him Maddie might be on the hillside as she had seen a lot of cars heading there.
He said sniffer dogs were then brought in from Britain.
Now listen carefully to the video below.
For those who are not up to speed with the characters involved, Inspector Paiva acted as intermediary between Kate and Gerry McCann and the PJ. He was therefore in a position of much personal contact with the McCanns, and it is a matter of public record that he was a witness to their "odd" behaviour on many occasions.
According to Inspector Paiva's own testimony the McCanns grew increasingly more negative in their reactions towards the activities of the police investigation, in particular after Martin Grime and his blood and cadaver dogs were drafted in.
So did Kate have a "dream", or not? Somebody must be lying - Doctor Gerry McCann or Inspector Ricardo Paiva. But who?