A SERVING Newcastle police officer was accused yesterday of taking bribes and supplying a gun to former boxer Fortunato "Lucky" Gattellari.
NSW police confirmed that Senior Constable Mark Donohue is "subject to an ongoing departmental investigation".
A spokesman said it would be inappropriate to comment further.
Giving evidence at the committal hearing of his former benefactor, Ron Medich, Gattellari said that, in 2010, he paid $2500 in cash to the police officer for a pistol.
"What kind of officer would do that?" Winston Terracini, SC, for Mr Medich, asked.
"The kind who took bribes from Mr Medich," said Gattellari, who added that the bribes were over deals involving Aboriginal land.
The court heard that the gun Constable Donohue provided was for Haissam Safetli, who was recently sentenced to six years' jail for his role in the execution-style shooting of Michael McGurk.
The Scottish-born businessman was murdered in his car in front of his nine-year-old son in September 2009. Mr Medich, a property tycoon, is alleged to have been the mastermind.
Gattellari, 63, said the gun he bought from Constable Donohue was not the murder weapon and was supplied after the killing of McGurk. He said he hid it in the back shelf of his office filing cabinet until Safetli came to get it.
When asked if he was concerned about what Safetli planned to do with it, Gattellari said: "Why should I be?"
The court heard "changing tyres" was the code Gattellari used for the murder. The former boxer was sentenced to seven years' jail for his role in organising McGurk's murder. He is now the Crown's key witness.
Under cross-examination by Mr Terracini, Gattellari told Central Local Court that he didn't keep records of his dealings on Mr Medich's behalf because 90 per cent of them were illegal.
Gattellari was also questioned about his financial dealings with Queenslander Louie Gibson. Gattellari said he thought his friend was a "racing identity" rather than a drug dealer.
In 2008, Gibson was sentenced to 11 years' jail for producing and trafficking the drug methylamphetamine.
The court also heard that hundreds of thousands of dollars, allegedly from Mr Medich's investments in Gattellari's electrical businesses, were handed over to Gattellari's family without Mr Medich's knowledge.
These included an interest-free loan of $370,000 to his brother, Rocky, a former world boxing champion, and a $100,000 loan to Gattellari's daughter, Romaine.
Neither of the loans have been repaid, prompting Mr Terracini to accuse Gattellari of being a thief and "milking" Mr Medich of millions.
"That's rich coming from you," Gattellari retorted.
He also denied ever threatening anyone.