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Former soldier tells court Ben Roberts-Smith ordered mock execution of unarmed prisoner during training exercise

Ben Roberts-Smith denies all the allegations against him. (AAP: James Gourley )

A former elite soldier has told a Sydney court Ben Roberts-Smith surprised colleagues when he ordered the mock execution of an unarmed prisoner during a training exercise.

Mr Roberts-Smith is suing The Sydney Morning Herald, The Age, The Canberra Times and three journalists in the Federal Court over a series of 2018 articles.

The Victoria Cross recipient argues he was defamed by false allegations in those stories of unlawful killings, bullying and domestic violence, while publisher Nine Entertainment is seeking to establish a truth defence.

A former colleague, anonymised in court as Person 19 and called by Nine, today recalled a 2012 pre-deployment training exercise in Lancelin involving an assault at a mock Afghan village.

He said another colleague, Person 9, was among soldiers playing the role of villager or civilian and was kneeling on the ground in Afghan robes towards the end of the exercise.

Person 19 said Mr Roberts-Smith directed another member of the patrol, Person 10, to "shoot the PUC (Person Under Confinement)".

"I remember that distinctly because it was unusual," the witness said.

"I remember seeing the look on Person 9's face, they were quite surprised as well, no-one had expected to hear that phrase."

Person 19 said he recalled Person 10 then "saying bang" or shooting at the ground.

The witness recalled another training exercise at Bindoon, also involving an assault on a mock compound.

He said there was a discussion about "sensitive site exploitation", the process of searching a scene to gather intelligence.

Person 19 was cross-examined by Mr Roberts-Smith's barrister Arthur Moses SC (AAP: Bianca De Marchi)

Person 19 claimed Mr Roberts-Smith told colleagues: "Any people we suspected of being enemy combatants, we'd take them into a room and shoot the c***s".

He told the court that either Mr Roberts-Smith or another member of the patrol, Person 35, then discussed the prospect of a "throw down", where a weapon could be placed on a body and "submitted as evidence that they were killed in the conduct of the assault."

This would mean they would "be deemed an enemy combatant," the witness said.

The court heard Person 19 was removed from the patrol days before deployment as a result of disciplinary action, after he left body armour and a plastic bag of ammunition in his car, which was later stolen.

The witness said the car was involved in an accident, leading to a military investigation and charges of losing service property and prejudicial behaviour.

He spent 32 days in defence force jail in September and October 2013, the court heard.

Person 19 also admitted to a "gross error of judgement" by making a false declaration on a form that his girlfriend wasn't living with him, for which he was dismissed in 2014 after pleading guilty to recklessly gaining financial advantage.

Under cross-examination by Arthur Moses SC, for Mr Roberts-Smith, Person 19 admitted he initially asserted he didn't know the ammunition was in the car.

He agreed he was "quite upset" and "disappointed" about not being deployed, describing his errors as "silly" and costing him a 14-year career.

"Is it the case that you harbour anger towards [Mr Roberts-Smith] because he had to raise matters about the ammunition in your vehicle with the unit?" Mr Moses asked.

"No," the witness replied.

Person 19 told the court when he first reported the issue to Mr Roberts-Smith, the veteran replied: "Don't say anything about this and it will go away".

The trial, before Justice Anthony Besanko, continues.

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