Copperbelt Police Tuesday afternoon questioned former defense minister George Mpombo over a cheque which he alleged issued when there was no money in his account.
Radio Phoenix reported that the cheque was issued to a company owned by former MMD chairman, Terrence Findlay.
The cheque was worth K10 million but latest information indicate that Mpombo paid Findaly in cash Tuesday afternoon and the matter is likely to be withdrawn.
The National Payment System Act (NPSA) which was effected on June 15 2007 criminalizes the willful bouncing of cheques.
The Act, which is administered by the Bank of Zambia, provides various penalties and imprisonment terms for offenders.
In the second quarter of 2009 alone, the Bank of Zambia recorded bouncing cheques worth more than Fifty Billion Kwacha.
Mpombo is the MMD MP for Kafulafuta. He resigned from his position of defence minister a few months ago but gave no reasons for quitting.
He has since gone on a war path denouncing the current government.