EACC moves to court to stop auction of Matili institute's property

The Ethics and Anti-Corruption Commission (EACC) has sought to be enjoined in a case where a private developer wants to auction Matili Technical Training Institute’s property over what the commission calls a ‘fraudulent debt’.

In court papers seen by The Standard, EACC has informed the High Court that the private developer, Ramagon Construction Company, is auctioning the college properties over an alleged Sh15.4 million debt.

The EACC claims the debt is fraudulent.

The contractor's claim, which is a subject of ongoing investigations by the Commission, is linked to a tender awarded by Matili Technical Training Institute to Ramagon Construction Company Limited for the erection and completion of a Twin Workshop Complex at the cost of Sh 58,997,852.88 in the Financial Year 2010/2011.

According to the documents filed in court by the Commission, it is alleged that the said tender award was marred by procurement illegalities and irregularities, with EACC establishing that the contractor was fully paid all his money for the work he did.

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EACC avers that Matili Technical Training Institute awarded the tender for the erection and completion of a Twin Workshop Complex to Ramagon Construction Company Limited and entered into a contract on 12th July 2011 for the sum of Sh29,311,659.64.

Furthermore, the commission is arguing that the contract was varied to Sh58,997,857 to facilitate further expansion of the construction where the contractor executed the contract and completed the construction on 14th October 2012, handing over the site to the institution on 16th July 2013, by the time of handing over the site, the contractor was only owed Sh9,071,000 as per their own claim.

In 2020, the lower court in Bungoma Civil Suit No. 239 of 2020 found in favor of the contractor and awarded Sh17,321,249.97, being the principal amount claimed plus interest and costs of the suit.

The institution, through the Office of the Attorney General, filed an appeal to the High Court, which was unsuccessful; the contractor was granted a decree for Sh15,458,069 as the alleged outstanding debt plus interest and costs at that particular time.

The contractor would later commence the process of executing against the public institution to recover the decretal amount of Sh15,458,069

However, EACC says following its preliminary investigations and the imminent grave injustice facing the public institution, it filed the application seeking to join the proceedings to immediately stop further execution and proclamation of the school property.

“As the commission, we intend to adduce evidence to the court pointing to the contractor’s fraudulent conduct and urge the court to review its decision that allowed the contractor to auction the college property,” reads the court documents by the EACC.