In 1992-1993, Fudge had to deal with the pure-blood supremacistic criticism directed against Head of the Misuse of Muggle Artefacts Office Arthur Weasley's proposal of a Muggle Protection Act, which was nonetheless losing reputation when Weasley was found in possession of a Flying Ford Anglia and his daughter Ginny started carrying out attacks on Muggle-born students at Hogwarts School, using the Basilisk concealed within the Chamber of Secrets; as Fudge believed the legend surrounding the Chamber to be a threat to society as well as to the boy Harry Potter, he took Hogwarts gamekeeper Rubeus Hagrid to Azkaban for his alleged connection to the attacks.
In 1993-1994, Fudge had to deal with assumed mass-murderer Sirius Black's escape from Azkaban, which was nonetheless ; as Fudge believed Black to be a threat to society as well as to Harry, he had Dementors stationed at Hogwarts and in Hogsmeade. However, Black narrowly escaped from Fudge's fingers.
During the summer holiday, he organised the Quidditch World Cup and the Triwizard Tournament with Ludo Bagman and Bartemius Crouch Senior. After Cedric Diggory's death in the Tournament and Harry claiming Voldemort had returned, Fudge refused to believe it, because it would mean the end of the peace he and the Ministry had worked so hard to maintain for the last thirteen years. Instead, he used his influence at the Daily Prophet to launch a smear campaign against both Harry and Albus Dumbledore, as Fudge was paranoid that Dumbledore was after his job and was simply telling lies.
However, following the Battle of the Department of Mysteries, Fudge saw Voldemort with his own eyes and was forced to admit that Harry and Dumbledore had been telling the truth the whole time, causing the wizarding community to protest and scream for his resignation. He was replaced as Minister for Magic by Rufus Scrimgeour, but stayed in an advisory capacity and communicated news of the Second Wizarding War to the Muggle Prime Minister if Scrimgeour was unable to.