Christopher Wayne Patterson, 54, was jailed for life in 2008 after killing 18-year-old Michael Hutchings and dumping his body in the Clutha River.
He was released from prison last week to a Hamilton address and banned from entering most of the South Island.
Since first appearing before the Parole Board in 2020, Patterson has developed an explanation for his extreme actions, which the board has repeatedly dismissed as "incoherent" and illogical.
The killer said Mr Hutchings had been involved in a car accident in which the young relative of a gang member was injured.
Patterson said he believed the victim would be targeted and if he did not kill him, he himself would be hunted down by the gang.
Board chairman Sir Ron Young outlined the flaws in that version.
"There was no logic to that because if, indeed, it was the case that other people were looking for this young man to kill, and there was no real evidence of that, and they could not find him because Mr Patterson had killed him, then Mr Patterson himself would have become the target on his own description of the events," he said.
"This was a very confused situation."
Sir Ron said the man’s alcohol and drug use provided some explanation for his distorted thinking.
Also, at the time of the murder, Patterson had been accused of rape and was angry at what he saw as an unfair accusation.
He stabbed Mr Hutchings in his right side, a wound which punctured his liver, causing fatal bleeding.
There were less serious wounds to the victim’s neck and hand, which suggested a struggle had taken place, the court heard at sentencing.
Mr Hutchings’ body was wrapped in a mattress protector, left in the house for almost 24 hours and then taken to the Clutha River, where it was weighted down with two 51 kg metal bars.
Patterson’s partner, Nichole Field, a former nurse aide, admitted a charge of being an accessory and was jailed for two years.
The Parole Board heard the killer had recently transferred from Christchurch Men’s Prison to Waikeria Prison, where he was living in self-care and "doing well".
Patterson had undertaken guided releases and had been working outside the wire without issue.
While Sir Ron acknowledged the reintegrative work, he said the inmate’s safety plan was lacking.
"The high risks he identified are essentially a series of circumstances under which friends goad him into behaving in a way he does not want, badger him to drink, friends telling him how to beat the system and friends telling him to do things he does not want to do," he said.
Sir Ron said that did not reflect the scenario which led to the murder, and directed Patterson to update his plan before a January monitoring meeting.
Parole conditions
Christopher Wayne Patterson parole conditions include:
• Not to enter Canterbury, Otago or Southland.
• To submit to electronic monitoring.
• Not to possess alcohol or drugs.
• To attend any treatment as directed.
• Not to contact any victim or co-offender.
• To disclose to Probation details of intimate relationships.
• To inform Probation about changes to employment status.
• To abide by a 10pm to 6am curfew.
