Publicly identifying a man accused of taking a bag containing nearly £40,000 worth of MDMA into a bar in Derry “could seriously damage his health”, a High Court judge has ruled.

Mr Justice McAlinden maintained the anonymity order as he granted bail to the 38-year-old defendant on Monday.

He faces charges of possessing and being concerned in the supply of class A drugs over the seizure made last month.

Prosecution counsel Adrian Higgins said police seeking the accused in connection with a separate domestic incident located him in one of the city’s pubs on September 25.

The man became agitated and claimed a bag he was carrying belonged to a friend.

He then attempted to run from the scene but was arrested and handcuffed.

A search of the bag uncovered 1.3kg of suspected MDMA, a mobile phone and other drug-related items.

Deal bags and a vacuum packer were found during further searches at the defendant’s home.

“At interview he stated that he was holding (the MDMA) as a favour or debt owed to someone, but wouldn’t elaborate any further,” Mr Higgins added.

The anonymity order was imposed when the accused first appeared before magistrates in the city, based on the general threat against suspected drug dealers in Derry.

Granting bail to him under strict conditions today, Mr Justice McAlinden questioned the reasoning behind the prohibition.

Defence barrister Sean Mullan indicated that the risk appears to come from paramilitaries.

Stressing the need for open and transparent justice, the judge held that proceedings could be reported on condition that the accused is not named.

“I will allow the anonymity order to persist, protecting the identity of the individual at present on the basis that he may be put at risk,” he said.

“Those that provided him with this 1kg bag of MDMA worth £39,000… could seriously damage his health.”