However, Koenig has been accused of lying to "save his own skin" by telling police just months ago that Gregory Lee Roser was to blame.
Roser, 63, and Sharon Graham, 61, have pleaded not guilty to murder after Mr Saunders died while working on a property north of Brisbane in November 2017.
The Crown alleges Graham asked Roser and another lover Koenig to kill her ex-partner Mr Saunders, 54, and make it look like an accident in a bid to claim his $750,000 life insurance.
Footage has been shown to the jury of Mr Saunders' legs protruding from the chipper at the Goomboorian property near Gympie after clearing trees with Roser and Koenig.
In his closing statement, defence barrister Lars Falcongreen said Roser "shamefully" assisted moving the body but accused Koenig of killing Mr Saunders.
Koenig first told police Mr Saunders had fallen into the chipper, Mr Falcongreen told the Brisbane Supreme Court jury.
However, in June this year Koenig told police Roser was the killer and his charge was reduced from murder to accessory after the fact.
Koenig initially did not incriminate Graham, a woman he was "obsessed" with, Mr Falcongreen said.
Koenig was "so close" that she had earlier asked him to kill another ex-partner Barry Collins, he said.
Koenig also had about 1000 photos of Graham on his phone and exchanged sexual videos with her up until January 2018, the court heard.
But Koenig's plan fell flat when police refused to accept an account exonerating Graham, Mr Falcongreen said.
"When he realised that no deal could be done ... unless he acknowledged Sharon's involvement ... at that point he incriminated his dear friend Ms Graham," the defence barrister said.
"This was the context regarding his account."
Mr Falcongreen said the court had heard Koenig had helped move the body, fed it into the chipper and stopped the machine with the legs protruding to make it look more like an accident.
The court also heard that Koenig had brushed the area with a branch after the death and not only removed but owned a metal bar that he claimed Roser used to kill Mr Saunders.
"This is the bar that he (Koenig) had brought along ... knowing that there was a plan to kill Bruce," Mr Falcongreen said.
"He is someone who took a considered, methodical approach to cleaning the crime scene immediately upon witnessing the death of his friend Bruce.
"You may well think he did these tasks because in fact he actually was the killer of Bruce Saunders."
Mr Falcongreen said Roser does not dispute that he lied to police, friends and neighbours by telling them the death was an industrial accident.
However, he claimed Roser did not tell the truth because he was afraid of Koenig's criminal connections and may "end up like Bruce".
The defence barrister said Roser later did not tell police because he felt "trapped in a lie" and feared Graham and Koenig may finger him as the killer.
Roser may have also remained with the "manipulative" Graham because he was "tragically lonely".
Graham has successfully applied for a separate trial.
Roser's trial before Justice Martin Burns continues.
15°C