David Benbow, 51, is in custody awaiting his next court appearance on October 18 after being charged with the murder of Mr McGrath, whose body has never been found.
He has pleaded not guilty to the murder.
Benbow and Mr McGrath had known each other for many years. Benbow’s Halswell property became a key focus of the police investigation.
Benbow was stood down from his duties at Christchurch Prison because of the police investigation, and later resigned.
When he appeared in court last week, his occupation was listed as a technician.
A Department of Corrections spokesperson said it could not comment on where Benbow would be held for privacy reasons.
“Safety is our top priority. Corrections has a duty of care to prisoners, and must keep them safe from harm. We have policies and operational procedures in place to support the safe, secure and humane management of all prisoners,” the spokesperson said.
Canterbury University professor and crime expert Greg Newbold said Benbow would be at “incredibly high risk of a serious and constant assault” if he stayed at Christchurch Men’s Prison.
“He is a former prison officer and that would be why he would not be able to live with the inmates because he would have been locking them up, he would be in big trouble there,” he said.