Durban - KZN police have confirmed that the man linked to the disappearance of Miguel Louw lived a few metres away from where a body was found on Monday afternoon.
The 43-year-old charged with human trafficking was granted R2500 bail on Wednesday in the Durban Magistrate's Court but could not come up with the money, KZN police said.
He remains behind bars at Westville Prison.
KZN police spokesperson Thembeka Mbele said the identity of the deceased could not be confirmed at this stage, however a few of Miguel's relatives are on scene.
She said investigations would begin on Tuesday and that Miguel's family would be allowed to identify the body.
She said the body, which was found with school clothes, was at an advanced stage of decomposition.
The mortuary van has since left the scene. Police are also leaving the scene.
People from the community have also started dispersing and were earlier seen taking photographs and videos from the scene.