State withdraws charges against Chombo

The state has withdrawn criminal charges against former Finance Minister Ignatius Chombo, who was accused of accessing a $14 billion loan from the Reserve Bank of Zimbabwe on the guise of purchasing farm equipment, before diverting the funds and purchasing two vehicles.

Chombo was being charged with fraud.

The state had alleged that on October 1 2005, Chombo intended to defraud the bank and applied for a capital expenditure loan under the “other crops and livestock support facility”, which was to be paid back in instalments within 18 months.

It was alleged that on the loan application form, Chombo misrepresented that the money was to buy two trucks, a tractor, combine harvester, a planter and a chicken feed mixer.

He allegedly signed a declaration that the funds were not to finance non-eligible expenditure covered by the contract.

Appearing before a regional magistrate this morning, the prosecution withdrew the charges before plea saying investigations had shown that the money was used to purchase the equipment.