Funaho is Azusa Masaki Jurai's first wife, and the mother of Yosho. She also serves as Jurai's Minister of Intelligence, and sees right through Yosho's "Katsuhito" disguise. She is a distant descendant of Masaki, the sister of the first ruler of Jurai, but considers herself to be human since she was born on Earth.
Her main reason for coming to Earth, in OVA Episode 13 is that other than to see Yosho, and to check up on Ayeka and Sasami, was to ask Washu if she would assist Jurai by mass producing Ryoko and Ryo-Ohki for their defenses. However, Washu already knew about this reason and refused because, to Washu, not only would she not betray Tenchi's trust by accepting the offer, she also felt there should only be one Ryoko and Ryo-ohki. Washu then assured a worried Funaho that she won't mass produce Ryoko or Ryo-ohki for any of Jurai's enemies, because she has no interest in helping anyone. (Washu does eventually create a "sister" of Ryo-ohki named Fuku.)
(source: Wikipedia)