Jurors this morning started hearing evidence in the trial of John Fenech, 48, of St Paul's Bay, who is pleading not guilty to the trafficking and possession of cannabis in March 2004.

Lara Lanfranco, representing the Attorney General, said that Mr Fenech had been watched by the Drug Squad, as he was suspected of trafficking cannabis from his residence and from a garage a block away.

During this surveillance he was seen talking to third parties in a way which was suspicious to be police. He looked like he was making a business deal.

At one point a car turned up and the police followed, stopped and searched it.

The passenger was found to be in possession of cannabis resin and the accused was arrested.

Dr Lanfranco said that when the police first spoke to the accused, he denied having a garage but a key to the garage was found among a set of keys he was carrying.

The accused had two bags of cannabis resin and €2,300 of cash inside the garage.