Carmelo Grech, the man who was arrested by the Libyan authorities last month, was brought back to Malta at around midnight.

Mr Grech was arrested almost three weeks ago at Labrak airport in Al Bayda, an area controlled by the internationally-recognised Tobruk-based government. He was found carrying over €300,000 in cash. 

The Libyan authorities were poised to press charges of smuggling against Mr Grech but later had a change of heart.

The Maltese sea captain was taken into custody by anti-Islamist General Khalifa Haftar’s army along with a Jordanian and two Algerians.

Mr Grech, who owns a trawler through his family business, Gulf Fisheries Ltd, has strong links with Libya, having ferried aid to Misurata during the 2011 anti-Gaddafi uprising.

It is still not clear why Mr Grech travelled to Libya to pick up the €300,000, whether it was owed to him or whether he was collecting the money on behalf of a third party.

Mr Grech was originally held at the Libyan National Army headquarters in the city of Al Marj, 83km east of Benghazi, and was later transferred to the Garnata high security prison.

He returned to Malta on a flight operated by Medavia

Meanwhile, a Syria-born Maltese citizen was arrested last week in connection with fuel smuggling and an unnamed Maltese man was arrested in connection with fuel smuggling off the Libyan coast early yesterday.