Man arrested in connection with death of Waiuku man

CCTV footage of Lance John Murphy from November 21.

Heavily armed police swooped on a Waihi neighbourhood and arrested a man as part of a homicide inquiry.

Members of the armed offenders squad descended on the town and arrested the 37-year-old man yesterday - and charged him with kidnapping.

The arrest was in connection with the investigation into Lance John Murphy, who was last seen leaving a petrol station late last month in Warkworth, north of Auckland.

His body was found in a field at a rural property near Wellsford over the weekend.

Lance John Murphy. Photo / Supplied

Waihi residents have told of witnessing and even being caught up in yesterday's drama in which about 30 armed police gathered near Waihi Hospital and cordoned off Princes and Albert Streets.

Waihi resident Sonja Ireland said she noticed the police Eagle helicopter circling around the local college about 2.30pm.

Ms Ireland said she learned through Facebook comments that the nearby streets had been blocked off and armed offenders squad members had surrounded a house.

Police confirmed they searched a Princes St property.

Some nearby residents were reeling after the armed police incident.

"I am still shaking ... " said one woman who lived nearby.

"I just stayed inside the house the whole time."

Another shocked resident said she had not known what was happening until a police officer knocked on her door and told her to move away from the window and hide in a far corner of her house.

There were two armed offenders squad members in her backyard, two at the front and one at the side and she also saw them circling a neighbouring property.

A car was confiscated by police after the raid, a resident said.

Residents said they saw the police searching the backyard and the garage of the property at the centre of the raid.

Police returned to the property about 5pm yesterday to seize more items from the backyard, a reporter at the scene said.

Police said vital information from the public led to the arrest.

Counties Manukau Police last night confirmed they had charged the 37-year-old man with kidnapping.

Mr Murphy was last seen on November 21 after he walked out of a Warkworth petrol station, got into his red Mazda and drove way.

Five days later, police searching for Mr Murphy found his Mazda at a property less then 2km from where he was last seen.

Police ramped up the investigation into Mr Murphy's disappearance when his blood was found through his car.

A Counties Manukau spokesperson said police could not rule out the possibility of further charges being laid against the arrested man.

The arrested man was to appear in Manukau District Court this morning.

A 51-year-old man charged with the murder of Mr Murphy appeared in the Manukau District Court on Monday.