Vanhanen was asked to explain why he did not recuse himself from a series of government decisions to grant more than a million euros from the Finnish Slot Machine Association (RAY) to the Youth Foundation (Nuorisosäätiö) between 2006 and 2009. He had previously chaired the non-profit housing group -- which contributed 23,000 euros to his presidential campaign in 2006.
Vanhanen made no comment after the hearing, which lasted about an hour and a half. He submitted a 12-page explanation of his actions to the committee.
Chancellor of Justice Jaakko Jonkka has declared that the former premier was biased in the decisions.
After hearing legal experts, the Committee will decide whether to launch a criminal investigation by the National Bureau of Investigation.
Vanhanen stepped down as PM and chair of the Centre Party in late June, and left Parliament last week. He is now managing director of the Finnish Family Firms Association.
Committee Chair Cites Differing Accounts
The chair of the committee, Kimmo Sasi of the conservative National Coalition Party, told YLE after the hearing that there were some contradictions between Vanhanen's and Jonkka's versions of events.
The committee is to question Jonkka again about the matter on Friday morning.
"Vanhanen will be given another chance to testify before the committee makes its final decision," Sasi said.