Steven Johnson, 70, appeared via video link in Warrnambool Magistrates Court on Thursday, accused of murdering 38-year-old Christopher Jarvis.
Mr Jarvis has not been seen since he left his family home at Wangoom, near Warrnambool, about 6am on June 13, 2006.
Johnson, a former police officer, barely spoke throughout Thursday's court hearing but his lawyer Xavier Farrelly detailed his numerous health conditions.
Johnson has post-traumatic stress disorder, anxiety, depression, a hernia and a nerve impingement in his spine.
He was being medicated for those conditions and was also prescribed codeine after undergoing a knee reconstruction, Mr Farrelly said.
The lawyer also told the magistrate it was the former police officer's first time in custody.
Johnson was remanded in custody ahead of his next court hearing in April next year.
Police will have four months to compile a brief of evidence against him.
The 70-year-old is the second man charged with the murder of Mr Jarvis.
Co-accused Glenn Ernest Fenwick, 59, was remanded in custody on Wednesday during a tense court hearing in Warrnambool.
Two of Mr Jarvis' distressed family members attended the court, yelling at the alleged murderer.
Victoria Police have said detectives are continuing to search for Mr Jarvis' remains.
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