The parish priest of Marsaxlokk was arraigned in court on Friday morning, pleading not guilty to charges related to misappropriation of funds and money laundering.

Fr Luke Seguna, 39, appeared under arrest before Magistrate Donatella Frendo Dimech on Friday. He also faced charges related to fraud and falsification of documents.

As soon as Fr Seguna entered the courtroom, his lawyer pointed out that he was feeling a shortness of breath and a burning sensation in the chest area. He added that Fr Seguna spent two days under arrest.

The court decided to call a doctor who could come to the courtroom and see to Fr Seguna, although the magistrate said it was likely a panic attack.

The defence did not contest the validity of the arrest but made a request for bail on behalf of Fr Seguna.

The prosecution argued against bail, noting that he has close ties with the community in Marsaxlokk that could lead to him influencing civilian witnesses.

"This isn't an ordinary person, this is someone who is esteemed in the Marsaxlokk community. The accusation is important..."

The prosecution said that there could be 150 people who could have fallen victim, and a value of €500,000. It is suspected that this money came through donations.

Fr Seguna's lawyer Matthew Xuereb raised an issue on the timing of the arraignment, a day before his birthday and after he received treatment for cancer.

"He's ready to obey any conditions, no matter how severe," the lawyer said.

Jose Herrera, also a lawyer to Fr Seguna, pointed out that money laundering has to be tied to a predicate offence. The magistrate quickly pointed out that one can have stand-alone money laundering.

Fr Seguna's condition had taken a turn for the worse and the court then suspended the sitting until a doctor was able to see him. An ambulance was eventually called to take Fr Seguna to hospital.

Bail was eventually denied.

The court also imposed a freezing order on Fr Seguna's assets, despite a request from the defence to only freeze the assets directly related to this case.

The Curia placed the Marsaxlokk parish priest on administrative leave earlier in the day after being informed that he was due to be charged.

The Archdiocese said that the priest "has been placed on administrative leave with immediate effect while proceedings are underway.  The parish will be placed under the care of an administrator appointed by Archbishop Charles Scicluna."

The Archdiocese has offered its full cooperation to the authorities and will seek to establish whether long-standing policies related to donations have been followed by the parish priest, it said.

"Since proceedings are underway, the Archdiocese will not be commenting further on this case and appeals to the media to respect the presumption of innocence so that justice can take its full and proper course."