The family of a man killed by loyalists in 1998 say they have “no confidence” in a new legacy body to probe allegations of collision in the case.

Fergal McCusker, 29, from Maghera, was killed at the back of a youth club on January 18, 1998.

The loyalist group the LVF at the time claimed responsibility for the killing.

No-one has ever been prosecuted or convicted over his death.

Solicitor Padraig O Muirigh, who represents the McCusker family, said they have been left “deeply frustrated” after a decision by Secretary of State Hilary Benn not to grant a public inquiry into the case.

An inquest into the killing was halted earlier this year by a coroner due to issues around information being withheld on the grounds of security.

Coroner Patrick McGurgan wrote to then-secretary of state Chris Heaton-Harris in April requesting that a public inquiry was held into Mr McCusker’s death.

With inquests into Troubles killings stopped this year by the former government’s controversial Legacy Act, the Independent Commission for Reconciliation and Information Recovery (ICRIR) is to become the main avenue for cases to be investigated.

The body was set up by the Legacy Act.

Mr O Muirigh said the McCusker family is “very clear that the ICRIR is not the appropriate mechanism to deal with the investigation of his death”.

“They have no confidence in the ability of this body to address the allegations of state collusion in the death of Fergal,” he said.

“The McCusker family will not give up the right to have a fearless investigation into his death that will expose the full extent of the role of agents in his death.

(Hilary Benn) expressed his enormous sympathy for the family and underlined his commitment to delivering legislation as soon as parliamentary time allows, to allow legacy inquests previously halted to proceed

A UK Government spokesperson said: “The Secretary of State has today written to the family of Fergal McCusker to inform them of his decision to not establish a public inquiry into his murder.

“The Secretary of State carefully considered a range of factors in reaching this decision, including the views of the family, the coroner’s ruling, the Government’s human rights obligations and important public interest factors.

“He expressed his enormous sympathy for the family and underlined his commitment to delivering legislation as soon as parliamentary time allows, to allow legacy inquests previously halted to proceed.

“He also encouraged them to meet with Sir Declan Morgan to hear how the Independent Commission on Reconciliation and Information Recovery would approach an investigation into the murder.”