Local newspapers had said that Faqih is believed to have collaborated with Israel's Mossad intelligence agency after being recruited in France in the mid-1990s.
Al-Akhbar newspaper said he was tasked with gathering information about Hizbullah, which fought a devastating 34-day war with Israel in 2006.
No formal charges have been filed against him and the case is still pending before the military prosecutor, a security official had said about Faqih.
Al Balad said Faqih, an automobile dealer, owned a gas station in Nabatiyeh.
It said he was highly respected by Hizbullah cadres in the region and had good links with the party's leaders, particularly since the man's generosity and donations for the Resistance contributed to having additional confidence in him.
Faqih had placed the gas station to serve the Resistance on many occasions, according to Al Balad.
The sources said Faqih was also accredited as a Hizbullah automobile agent.
How was Faqih uncovered?
"It was by mere chance that the Faqih network was discovered," one source close to Hizbullah told Al Balad.
He said as an auto electrician was busy repairing an electrical malfunction inside one of a U.S.-made four-wheeler belonging to a Hizbullah cadre, he laid eyes on an "unfamiliar device" attached to the vehicle's electric network.
At the beginning the electrician thought the device could have been placed by the vehicle's owner. He thought it was necessary to draw the attention of the car owner due to the connection between the malfunction and the device.
The car owner was surprised and a massive search for devices attached to Hizbullah cars was launched, according to the source, particularly after finding out that the device was a wiretap detector connected to satellite.
Dozens of Hizbullah vehicles were discovered to have been fitted with the same device and it became known that one thing was common: The car dealer, Marwan Faqih.
Hizbullah has reportedly arrested Faqih in January 2009, Al Balad said, adding that it had no independent confirmation of this report despite earlier official military confirmation that Faqih is in army custody.
Al Balad cited some reports as saying that as many as 12 people have been arrested by Hizbullah in connection with the Faqih network.
The daily concluded its report by asking whether top Hizbullah commander Imad Mughniyeh was killed while driving one of Faqih's cars.
