Mario Camilleri, known as L-Imniehru, is expected to be arraigned, possibly today, after about 400 grammes of heroin were allegedly found in his flat in Swieqi in a raid by drug squad police yesterday morning.

Police sources said surveillance led to a breakthrough in their investigations. A 38-year-old man from Marsa was allegedly observed about to do a suspected drugs deal with Mr Camilleri, 45.

On arresting the two men, the police allegedly found about five grammes of heroin on Mr Camilleri's person and some more heroin was found behind a kitchen cupboard in a thorough search of his flat, the sources said. Implements connected to drug abuse were also found, the police said.

A 30-year-old man from Sta Venera was also held in connection with the drugs find.

Mr Camilleri was recently released from prison after completing a prison sentence. In June 1997, he was arrested after being found in possession of cocaine, for which he was jailed for 16 years and fined Lm25,000 in June 2001. This sentence was reduced by four years in July 2002 by the Criminal Court of Appeal composed of Chief Justice Noel Arrigo, Mr Justice Joseph Filletti and Mr Justice Patrick Vella. The Chief Justice and Mr Justice Vella were later arraigned, accused of accepting bribes to reduce Mr Camilleri's sentence.

Mr Camilleri was in turn accused of bribing the judges. He was later also accused of money laundering and was again charged, alongside 18 others, including his wife, son and mother, with conspiracy to traffic in cocaine and cannabis on May 2002. The 19 were charged after the police allegedly found four kilogrammes of cocaine and one kilogramme of cannabis that were to be trafficked between Italy and Malta.

Mr Camilleri had been granted bail on these cases but was remanded in custody as he was still serving time related to cocaine trafficking. He was finally released from prison in June this year on completing the first prison term, taking into consideration remissions provided for by prison regulations.

Sources said yesterday's drugs haul was easily worth Lm40,000 at current street prices.