High Court judge Justice Garainesu Mawadze upheld Maguwu’s contention that he was a suitable candidate for bail and allowed the appeal.

In his ruling, Justice Mawadze accepted defence submissions that the lower court last week misdirected itself when it failed to properly determine the pertinent issues and dismissed Maguwu’s bail application.

Justice Mawadze blasted the prosecution for "dismally" failing to substantiate the assertions that Maguwu was likely to interfere with investigations and to clarify the nature of the "outstanding investigations".

When the court adjourned, his relatives broke into song and dance while others shouted, "God is great."

Police, who were holding onto Maguwu’s passport, were told to surrender it to the clerk of court as part of his bail conditions.

Maguwu is required to report daily at Mutare Central Police Station and continue staying at his Chikanga house in the eastern border town until the matter is finalised.

He will be confined to a 40km radius of Mutare and only travel to Harare for court appearances using the most direct route (Harare-Mutare Highway).

"This court could not be part of this blackmail that offends the ends of justice. Even at this late hour, this court is still not sure of when the State will complete investigations when given benefit of doubt.

"I am satisfied that the magistrate misdirected himself in a number of ways. I am not persuaded that the appellant is still not a proper candidate for bail.

"The appellant has shown on a balance of probabilities that he should be freed on bail. It is on that basis that the appeal is awarded.

"The decision of the magistrate is therefore set aside," ruled Justice Mawadze.

It was the court’s finding that Maguwu was not obliged to give his laptop password to police.

"He cannot be a State witness in his own case. Although it is not good to refuse with the password, he is not under any obligation to do so.

"He has a right to silence," Justice Mawadze said.

He queried how interviewing outstanding witnesses would bolster the State’s case considering they were regarded as "the accused person’s sympathisers".

Maguwu was arrested on June 3 this year after surrendering himself to police in his lawyer’s company.

Police recovered a document with alleged falsehoods that he reportedly sent to Kimberley Process diamond monitor for Zimbabwe Mr Abbey Chikane and an e-mail allegedly sent to some people including Gabriel Shumba, Tor Olsen and Andrew Dekkar.

Maguwu lost two bail applications at the Harare Magistrates’ Court and one at the High Court before yesterday’s ruling.