Former Iraq hostage James Loney was in a federal courtroom Monday morning to offer bail support to a suspected terrorist who has been detained under Canada's controversial security certificate program.

Mahmoud Jaballah has been detained for five years without charge for his alleged involvement with al-Jihad, an Egyptian terrorist group with links to Al Qaeda.

"We say in Canada that we have the rule of law and are a free and open democratic society," Loney told the Toronto Star.

Loney added that he is prepared to act as a surety for Jaballah.

The Canadian Security Intelligence Service (CSIS) alleges that Jaballah was a member of al-Jihad in Egypt before moving with his family to Canada in 1996 to claim refugee status.

The father of six is accused of orchestrating several bombings in east Africa.

Loney told reporters outside the courthouse that he can sympathize with Jaballah.

"My hope is that the people that have the power to make the decision to release him their hearts ... and minds open to the injustice that this constitutes," Loney said.

Jaballah is being held at a Kingston, Ont. facility especially built for security certificate detainees. The Kingston Immigration Holding Centre is located alongside the Millhaven Penitentiary.

Evidence collected by the government for the bail hearing has never been seen by Jaballah and his lawyers.

Loney called the security certificate process unjust.

"Not just for him but really for all of Canada that they are trading away basic civil liberties preemptively in order to protect us against a possible threat," Loney said.

Loney was held in Iraq for 118 days. He and three other peace activists from the Christian Peacemakers Team organization were held hostage in the war torn city by a group calling itself the Swords of Righteousness Brigade.

The captors demanded that prisoners be released from Iraqi prisons in exchange for the safe return of Loney, fellow Canadian Harmeet Singh Sooden, Briton Norman Kember and American Tom Fox.

Fox's bullet-riddled body was discovered March 10 on a Baghdad street.

Loney's surety offer is also being seen as a way to say thanks. Last December Jaballah and others sent an open letter urging that the captive Christian Peacemakers be released.

Jaballah's bail hearing is expected to last for a week.