Ms Ormsby faces charges over possession of a half-smoked joint of hashish found in her handbag, but not in relation to the drugs in the villa.
Mr Mazzucco said he and Ms Ormsby had spent some time in the Villa Askara -- which was rented for three nights by Sydney musician Azaria Byrne, from the band The Art -- with two friends until 7pm, before going for dinner at a Spanish restaurant.
"When the witness (Mazzucco) was at the restaurant, he met with three Russian women who invited them to go to their house in Umalas. Witness, with all of them, then drank vodka," Mr Mazzucco said in his statement.
The next morning he went to have lunch and exchange money before collecting Ms Ormsby from the villa, but when he arrived the police were there.
"The witness (Mazzuzzo), in Bali or outside Indonesia, has never consumed narcotic," the prosecutor read from the statement.
"And he only saw the evidence (drugs) when showed by police in the police station. Witness didn't know who had the drugs that was shown by police."
Prosecutors presented evidence claiming Ms Ormsby had undergone drug therapy and rehabilitation twice previously, and had often used drugs, such as hashish, marijuana and ketamine, in the past, the newspaper said.
She has been detained in Kerobokan prison for the duration of the trial.
The drug bust which led to her arrest uncovered 132.2 grams of MDMA and 26.06 grams of hashish in a bedroom drawer of the villa. There was no evidence linking Ormsby to these drugs, prosecutors have said.
The trial was adjourned to June 19.
