Police set up at the Hokio Beach Rd bach at the centre of police investigation into missing gang member,

The meth war between the country's gangs has claimed its first casualty.

Nomad gang member Palmiro George MacDonald, 36, from Horowhenua is officially missing, according to police. He's dead, according to the Nomad gang.

Stuff reported on January 22 that a gang war was about to erupt, fuelled by the Head Hunters' expansion of its methamphetamine trade across the country.

MacDonald was last seen on March 23. The Nomads are sure the Head Hunters killed him and disposed of the body.

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Detective Inspector Ross McKay confirmed MacDonald, known as Powser, was last seen three weeks ago and is the subject of a missing persons investigation.

He said the disappearance is out of character and there are concerns for his safety.

He went missing at the same time a bach owned by Nomad members in Hokio Beach was razed in a suspicious fire.

McKay said police are investigating whether the disappearance is connected to the arson.

And while that's the official line, a police source said MacDonald's bank accounts have not been used in three weeks and it is likely he is dead.

Nomad sources believe MacDonald was killed at the time of the fire in a confrontation with the Head Hunters, also known as the 88s, over methamphetamine.

A gang member who would only speak on the provision of anonymity said MacDonald's death has some members on edge.

"There's been messages some of the boys have gotten from the 88s saying that Powser is dead and they're next," he said.

"We don't have the why part yet, which we'll get soon. But we do know it was over crack houses."

The gang member said Powser had a fight with a known Head Hunter in Horowhenua over a meth house run by the Mongrel Mob in the Horowhenua area.

"What we know is Powser went for a fight about three weeks ago and nobody has seen him since. Then the boys got these f----- up messages."

"We don't want violence. We just want to know what happened first."

It's understood the meth trade in Horowhenua is run by the Mongrel Mob in partnership with the Head Hunters.

"All this started in prison last year," the Nomads source said.

He said Powser, a Mongrel Mobster and a Head Hunter were all in lock-up together.

"Some sh-t has gone down and it's spilled to the outside.

"We aren't going to war yet - we just want to find out what the f--- is going on."

They have not gone to police with their fears.

"We'll let the police do their job and not get in the way, but we have a job to do as well. When one of the brothers is dead, we have to find out what happened. We don't want violence, but we can't let things lie as they are."

Gang sources from the Mongrel Mob and Black Power say that tensions are rising on the street.

"You can feel something is about blow. It's f----- up," a Mob member said.

The Rebels Motorcycle gang and the Head Hunters are also at boiling point in Christchurch, while a massive police operation in Bay of Plenty yesterday stopped hundreds of gang members and caused traffic delays.

Anyone with information about MacDonald's whereabouts is asked to contact Levin Police via phone or text on 021 0227 0451, or alternatively provide information anonymously through the organisation CrimeStoppers, Ph 0800 555 111.

McKay said Horowhenua Police completed a scene examination at the bach on Saturday and the results will be assessed over the coming days.

"We appreciate that while some in the community may be concerned about possible conflict as a result of his disappearance, there is absolutely nothing at this stage to indicate this is likely. Police will, however, continue to monitor the situation.

"In the meantime, we encourage people in the community to go about their business as normal, and contact police if they have any concerns."