Man accused over Londonderry guns and explosives find believed to run a money-lending scheme for New IRA, court told

Prosecutors also claimed John Kelly, 43, used other vulnerable members of his own family network to move and store the arms haul.

Kelly, of Columbcille Court in the city, was arrested during a major police operation last month. Two Soviet grenade heads, plastic explosives, two electric detonators and two handguns were seized in searches of properties on September 7. Sixteen PSNI officers sustained injuries when rioting broke out at the scene.

Kelly denies charges of possessing a firearm, ammunition and explosives with intent to endanger life.

He is allegedly linked to the recovered weaponry by forensic and mobile phone evidence.

Two other members of his family have also been charged, including his 48-year-old Gerard Kelly, of Victoria Place in Londonderry. Gerard Kelly was previously described by his own lawyer as an alcoholic stooge more akin to Barney Grumble, a character from the cartoon sitcom The Simpsons.

In court today prosecution counsel said he had been drunk when the arms were seized and apparently in debt to his brother. Opposing John Kelly’s application for bail, she said: “Police believe he is the common denominator and controller of the weapons recovered. “He utilised his family network to transport and store weaponry on behalf of the New IRA.”

It was claimed that John Kelly orchestrated and co-ordinated events, issuing warnings to other more vulnerable relatives.

In one phone call during the searches he allegedly warned another suspect: “You know nothing, the same as me.”

According to the prosecutor he has an active association with the New IRA.

“Police believe he runs a money lending scheme on their behalf, which would fit in with him lending money to family members,” she added.

During the hearing it emerged that John Kelly is now under threat from dissident republicans.

Concerns were expressed for his safety if he was released and possibly “debriefed” about the seized weapons.

Defence barrister Sean Doherty disputed the case against his client, questioning the strength of the alleged DNA link and mobile phone contact with other suspects.

Mr Doherty also urged the court to completely disregard what he described as “extremely prejudicial” allegations of paramilitary membership made without any charges.

“It’s a baseless assertion that this man is a member of the New IRA,” he insisted.

Refusing bail, however, Mr Justice Rooney held there was prima facie evidence to link John Kelly to the charges he does face. The judge stated: “I’m concerned about the risk of re-offending and interference with witnesses.”