More likely that they had the rest of the family statements and it really was they wouldn’t recognise who they saw rather than they recognised it wasn’t GM.
One of the Smiths saw Smithman walking down the stairs. If that person didn't agree I think S T A C K I N G the D E C K is a good description IMO.
"— After leaving the bar, he travelled in the opposite direction and reached a set of stairs which gave access to Rua 25 de Abril (25th of April Street). On this artery they followed a second street, parallel to Rua 1 de Maio (1st of May Street) whose name he does not remember. He was heading toward his apartment (Estrela da Luz complex) which is located a little above the street Travessa da Escola Primária (Primary school crossing). As he reached this artery, he saw an individual carrying a child, who walked normally and fitted in perfectly in that area, in that it is common to see people carrying children, at least during the holiday season. This individual was walking the downward path, in the opposite direction to him and his companions. He is not aware where this person was headed. He only saw him as they passed each other. He assumed it was a father and daughter, not raising any suspicion. "
Here Martin Smith talks of "set of stairs" and "downward path" but on the map of where his sighting occurred he was a long way from the stairs at the time.
Mary Smith is at the top of the stairs and does know if the man took the stairs. "— The deponent remembers that upon reaching the top of the stairs, she looked to her left and saw a man (1) with a female child (2) in his arms, walking along the pavement of Rua 25 de Abril. He was walking in her direction at a distance of, give or take, two metres.
— The deponent crossed to the other side of Rua 25 de Abril and began walking up Rua da Escola Primária in the direction of the Estrela da Luz apartment complex.
— She did not see if the referenced individual with the child descended Rua das Escadinhas or if he continued along Rua 25 de Abril."