Mr McFarlane (35) was found dead in his Pine Hill Rd house about 4.30am on Wednesday, and Southern Police Acting Detective Inspector Colin Blackie yesterday confirmed a third suspect was arrested and charged with murder on Sunday night, after a 23-year-old man was located in a Nissan Skyline car in Oamaru.
The vehicle he was found in was seized for forensic examination. Ryan Warren Geary-Smart (23), an Oamaru forestry worker, did not make an appearance in court yesterday, but instead was remanded by a Dunedin District Court registrar.
Two other men have already appeared in the Dunedin District Court charged with the murder of Mr McFarlane.
Steven Kenneth Boskell (18), of Palmerston, appeared, in the Dunedin District Court on Friday charged with murder.
A 22-year-old man, who was granted interim name suppression, also appeared yesterday charged with murder, after he was apprehended at an address in Oamaru on Saturday.
Both men were remanded in custody to the Timaru High Court until October 1. Acting Det Insp Blackie said inquiries in the ''complex'' investigation were continuing.
Police still wanted to talk to several people who knew about the circumstances leading up to Mr McFarlane's death and ''in particular one person who may have been present at the time of his death''.
He could not confirm whether that person might have witnessed the crime or might be a suspect, or both.
''Essentially, we are seeking to make contact with this person at this stage to find out what they know about Mr McFarlane's death.''
Police had carried out scene examinations of locations and vehicles. A scene investigation of Mr McFarlane's Pine Hill Rd home would conclude in the next couple of days.
The investigation, named ''Operation Steelers'', which involved about 40 police and support staff, had made ''good progress''. It had also received good co-operation from the North Otago public, he said.
''We'd also like to thank those members of the public who have provided the investigation with information. This is greatly appreciated.''
Police also continued to forensically examine a second Nissan Skyline that was impounded following a short police pursuit last Wednesday. Police believed the vehicle was linked to the circumstances surrounding Mr McFarlane's death.
Although details of a postmortem examination have not been released, police had previously made it clear he died in a ''violent attack''.
