The ruling by the Northern Ireland Sentence Review Commission that Loyalist Johnny Adair must remain in jail has been welcomed by the Northern Secretary Mr Peter Mandelson.
The decision overturns a preliminary finding that he should be freed. It followed fierce opposition to his release Mr Peter Mandelson and the RUC Chief Constable Sir Ronnie Flanagan.
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Jailed Loyalist Johnny Adair
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Adair, a leading figure in the UDA/UFF, was sent back to jail last August at the outbreak of a inter-loyalist shooting war which left seven men dead.
Senior security personnel feared new tensions if he got out of Maghaberry prison near Lisburn in Co Antrim but today's ruling could trigger protests, according to Adair's supporters.
Associates immediately said there would be a High Court action to challenge the decision. Mr John White, chairman of the UDP, which reflects UDA attitudes, claimed the commissioners got it wrong. He said: "We will be going for a judicial review. I feel the decision has been overturned on the basis of evidence given in camera, which is totally unfair.
"It's a fundamental right within the criminal justice system and the judiciary process if charges are lobbed at someone he should know the type of evidence presented and is able to defend himself... "It's another form of internment without trial," said Mr White.
In its ruling the commission said: "... the applicant is likely, if released, to breach the terms of his licence."
Details of Mr Mandelson's decision to revoke the licence were also outlined in the ruling.
The Secretary of State claimed Adair had been involved in the procurement and distribution of guns and munitions, "the authorisation of a number of paramilitary attempted murders and of a number of so-called punishment shootings".
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He also claimed Adair had orchestrated sectarian tensions and attacks in north and west Belfast and Portadown, Co.Armagh, last summer as well as taking part in paramilitary shows of strength.
Mr Mandelson also claimed Adair paid proscribed organisations from the proceeds of drug dealing.
Adair, the Commissioners report stated, was engaged in the commission of an act of terrorism on August 21st last year - the day violence between loyalist factions erupted on Belfast's Shankill Road after two men were shot dead in the neighbouring Crumlin Road by rival Ulster Volunteer Force (UVF).
An angry Adair, they said, lost his temper when he used violence in an attempt to gain entry into a taxi office, believed associated with the UVF, "for the purposes of putting a section of the public in fear".
The SDLP's Mr Alban Maginness, MLA for North Belfast, welcomed the decision,claiming it was a "right and just decision" to keep Adair in custody.
"I believe the threat that Johnny Adair presented to the people of North Belfast and Belfast generally was considerable and I am glad that this decision has been taken," he said.
PA