Commission seeks to halt auction of Matili technical college

The Ethics and Anti-Corruption Commission (EACC) has filed an application in the High Court in Bungoma seeking to stop the auction of public assets belonging to Matili Technical Training Institute, citing a fraudulent debt claim by a private contractor.

EACC wants to be enjoined in an ongoing case involving a construction company, which is executing a court order to recover Sh15.4 million from the technical institution.

The Commission argues that the claim is based on a debt already settled in 2017.

“Investigations by the applicant established that the outstanding sum of Sh9 million was paid settled by 2017 and that by the time the respondent was instituting the Civil Suit, which is the subject of the instant appeal, they had already been paid the sum of Sh9,071,698 which they are claiming herein,” EACC said in court papers.

The construction firm was contracted in 2011 to erect a Twin Workshop Complex at the institution. 

According to court papers, the initial contract, worth Sh29.3 million, was later revised to Sh59 million due to changes in the scope of work. The project was completed in 2012 and officially handed over in July 2013.

According to the commission, the contractor received Sh49.9 million by the time of project completion. The firm later claimed the college still owed Sh9 million, which the Commission says was fully cleared through installments by 2017.

Still, the company (Ramagon) filed a fresh suit in 2020—Bungoma Civil Suit No. 239 of 2020—seeking the same amount plus interest, citing delayed payment, EACC claims.

A lower court ruled in the contractor’s favor, awarding Sh17.3 million, later revised on appeal to Sh15.4 million. That ruling is now being used to justify the planned auction.

EACC claims the judgment was obtained through misrepresentation and wants the court to set it aside to prevent the loss of public assets. It also alleges procurement irregularities in the award and variation of the original contract.

The case is before Justice Rose Ougo, who has ordered all parties to respond before the next mention on June 19.