He had the motivation and money to order the contract killing, the Crown prosecutor Mark Hobart, SC, told a late afternoon court sitting yesterday. The businessman was ''the mastermind of this conspiracy'', he said.

Mr Hobart asked that Mr Medich be refused bail because he had ''the resources and the ability to interfere with witnesses'' and the means to leave the country.

New evidence has emerged that two other men charged earlier in relation to McGurk's murder have agreed to give evidence against him. One of those who has ''rolled over'' is Mr Medich's childhood friend, the former boxer Lucky Gattellari.

Mr Gattellari has revealed to police Mr Medich's instructions to him regarding the murder of McGurk. He has told police he received a text from the alleged murderer Haissam Safetli 90 minutes after the killing, while he was with Mr Medich. The text read: ''Job's done.''

However, Mr Medich's barrister, Clive Steirn, SC, played down the allegations, saying Mr Gattellari owed Mr Medich money and had reasons for wanting him out of the way.

The court heard that two days after his arrest this month, Mr Gattellari had called Mr Medich's son Peter from jail and said: ''I want $1 million in bail, otherwise I will dump on your father.''

The court heard that Mr Safetli has told police he was introduced to Mr Medich by Mr Gattellari at a Rosehill cafe last year.

Mr Medich allegedly told him: ''Can you get this job done in four weeks? I want him [Mr McGurk] gone. I want you to do it … it is going to be done regardless. You have to organise it.''

At this point Mr Medich, who appeared by videolink from cells in the Sydney Police Centre, sniggered and said: ''Bullshit! What a load of crap.''

Throughout the proceedings, Mr Medich scoffed and mumbled asides while flipping through police documents.

According to the police statement, Mr Safetli said Mr Gattellari offered him $250,000 to carry out the murder. It was later increased to $300,000.

Mr Steirn said there was a transfer of funds to Mr Gattellari but that this was ''entirely consistent'' with their business relationship. Mr Medich has ploughed about $16 million into joint ventures with Mr Gattellari, much of which has been lost, the court heard.

The homicide squad commander, Detective Superintendent Peter Cotter, said that yesterday's arrest had been made possible as further information had come to light since the dramatic arrests a fortnight earlier.

''A number of people that we have charged … have obviously considered their options over the last few weeks when real pressure has been mounted on them,'' he said.

Mr Gattellari, 60, was charged with soliciting murder and being an accessory before and after the fact to murder. Christopher Estephan, 20, from Harrington Park, and his friend Mr Safetli, 45, were both charged with murder.

A former Bosnian soldier, Senad Kaminic, 42, was charged with being an accessory before and after the fact to murder.

Just after noon yesterday, by appointment, Detective Inspector Mick Sheehy and three senior detectives arrived at the 11th floor Martin Place office of Mr Medich's lawyer John Bamford.

Dressed in his customary all-black garb, Mr Medich, 62, was arrested and taken away in handcuffs to the Sydney Police Centre in Surry Hills where he was charged with soliciting the murder of McGurk.

The 45-year-old was shot in the head as he pulled up outside his home in Cranbrook Avenue, Cremorne, at 6.30pm on September 3 last year.

Detective Cotter said the motive for the alleged murder was soured business deals.

Yesterday afternoon, Mr Steirn requested bail which was opposed by Mr Hobart who handed the magistrate Antony Townsden a 17-page police statement.

Mr Hobart said: ''I can see no reason why eventually we … would not charge him with murder.'' He also said that such a charge was a very serious one. ''It is a contract killing,'' the penalty for which was often life imprisonment, he said.

Mr Steirn told the court that the Crown's case was ''weak''. He said there was no independent evidence and an accomplice could not corroborate the evidence of a co-accused.

Mr Medich needed to attend to his business affairs and to prepare for his forthcoming lawsuit against Mr McGurk's wife, Kimberley, the court heard.

Despite Mr Medich offering to put up $1 million in surety and his younger brother Roy offering $500,000 in cash, the magistrate refused to grant bail.

Police spent several hours yesterday at Mr Medich's $40 million waterfront house in Point Piper. They left carrying documents and computers. They also executed search warrants on Mr Medich's office in Norton Street, Leichhardt.

Mr Medich will be back in court on November 4.

Less than a month after the murder, Mr Medich fielded one of the curliest questions ever asked in NSW Parliament.

''Did you have any involvement in the murder of Michael McGurk?'' asked the Greens MP Sylvia Hale. ''You've got to be joking,'' replied Mr Medich.

He snapped back at Ms Hale: ''You're a shocker'' and ''I think this is a bloody disgrace''.

- with Les Kennedy and Nick Ralston

UPDATE: Sydney's Central Local Court heard today that the alleged case involving Mr Gattellari and Mr Kaminic would return to court on November 25.

It was told that the Crown would deliver the brief of evidence against the two men on that date.

Outside the court, Mr Gattellari's lawyer Tony Belanto said: "My client is a cog in the wheel of justice."

He said it was early days and his client "was happy to let justice take its course".

Asked about his client's claustrophobia in jail, Mr Belanto replied: "It's OK, it's OK, they are accommodating him very well."