Braehead victim claimed he was approached by MI5

His body - which had been stripped - was discovered on Braehead Road, near the Irish border on the road to Letterkenny, at about 10.30pm on Wednesday.

Foyle MLA Martina Anderson said the attack bore the hallmarks of a paramilitary-style killing.

Speaking on behalf of the partner of murder victim Kieran Doherty and his family she said: "I have been asked to request that the family of Kieran Doherty be allowed to grieve in private. Kieran's partner Mairead and his family are traumatised and in deep shock at the sudden and brutal death of Kieran. They wish to be left to plan his return and burial in private and in support of each other.

"The family have particularly asked that media do not congregate around the family home and they thank you for respecting their wishes."

Earlier, in her initial response to the shooting, she said: "Let those who are responsible come out and tell us.

"The vast majority of people in Derry would absolutely condemn what has happened here in their city this evening."

"There is no place for this in our society.

"We all want the gun taken out of our community, we are absolutely disgusted with what happened last night, how dare they."

SDLP Foyle MP Mark Durkan said: "I totally and absolutely condemn this brutal and crude murder, which is a throwback to the very worst of our past."

Detective Chief Inspector Ian Harrison said the people who murdered Mr Doherty were criminals, who had destroyed not only the victim's life, but those of his partner and his young family as well.

Last November Mr Doherty went public with a claim that MI5 had approached him stating it would hamper the development of his cigarette manufacturing business if he didn't co-operate with them.

Speaking to a local newspaper then Mr Doherty said he had four applications to HM Revenue and Customs (HMRC) to open new premises for the firm turned down.

He claimed they had tried to recuit him as an informer and that his business had been stalled.

Mr Doherty's business partners had spent 500,000 on purchasing machinery for the plant, he claimed at the time.

He said he was originally approached by MI5 as he attempted to board a flight at Luton airport.

"I was taken into a side room by a man calling himself 'Justin', who identified himself as MI5," he claimed.

"He was able to tell me all about the history of my business and the troubles I've had with securing a licence for premises.

"We have applied on four separate occasions for a licence for premises - twice for Derry, one in Tyrone and one in Newry.

"Each time we have been rejected without reasons being given. At one meeting the Customs and Revenue representative advised us against even applying to open a site in Derry."

Mr Doherty claimed the contact was seeking information on a Cypriot business man he met.

"This is placing my entire business in danger," said Mr. Doherty.

HMRC stated at the time that it had requested further information in writing from Mr Doherty in June and August 2009 but had received no reply.

To this Mr. Doherty had stated: "We have spoken to Customs about the information they have requested.

"It concerns accounting systems and they agreed that this would follow at a later stage."

"This has only become an issue now, I think it is their get out clause. To be honest I believe the whole thing is a set-up in order to try and recruit informers," he claimed.