A third man was arraigned in court today in connection with an investigation into the illegal export of munitions to Libyan entities.

Informed sources said that the accused, Mario Farrugia, 41 of Xaghra, had been in possession of 70,000 bullets.

He was accused of  conspiring with people in Malta and abroad to sell ammunition and failing to keep a proper inventory of weapons and ammunition in his possession in breach of a firearms shop licence.

He was also accused of keeping more than the legal maximum of 12,000 bullets at his shop - Hobbies - in Victoria, or at his house. 

He pleaded not guilty and was granted bail against a deposit of €3,000 and a personal guarantee of €20,000.

A Maltese man and a Libyan were arraigned in connection with the same case yesterday after more than 40,000 bullets were seized from what was described as an illegal ammunition factory in Rabat.

Two men were charged with selling the ammunition to Libya –  the owner of a gun shop, Michael Azzopardi, 53, of Rabat, and Yaacob Feraj, 31, a Libyan who lives in Tarxien.

Police inspectors Michael Mallia and Keith Arnaud, who spoke very cautiously because of the ongoing investigation, said there were people in North Africa wanted by the police over this case.

Mr Azzopardi, who owns Magru Gun Shop, where the factory was discovered, and Mr Feraj pleaded not guilty to organising or financing a criminal organisation and conspiring with people outside of Malta in breach of the Firearms Act.

They also denied illegally storing explosives, manufacturing bullets and selling the ammunition to Libyan companies when they knew or suspected it could be used against the population.

Dr Franco Debono is defence counsel for Mr Farrugia.