A string of transcripts from a phone conversation between Redknapp and then News of the World journalist Rob Beasley were read to the jury.
Of Manadric's explanation for the money in an off-shore account in Monaco, Redknapp said: "He don't know what he is f***ing talking about. What is he talking about? It is a bonus.
"Don't say bung. It's nothing to do with a bung. It's paid by the chairman," he added.
"How can it be a bung when the chairman of the football club paid me?"
Redknapp's son Jamie was in attendance at the trial, which is expected to last two weeks.