EACC moves to stop sale of institute's property in Sh15b dispute

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

EACC has told the High Court that Ramagon Construction Company is seeking to recover Sh15.4 million debt, which is a subject of an ongoing investigation.

The money relates to a Sh58,997,852.88 tender for a Twin Workshop Complex in 2010/2011. The commission alleges that the tender award was marred by procurement illegalities and irregularities, with EACC claiming that the contractor was fully paid for the work done.

According to the agency, Matili Institute entered into a contract on July 12, 2011 for the sum of Sh29,311,659.64.

Furthermore, the commission argues that the contract was varied to Sh58,997,857 to facilitate further expansion. The work was completed October 14, 2012, and the project handed over to the institution on July 16, 2013. By this time, the contractor was only owed Sh9,071,000.

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In 2020, a lower court in Bungoma awarded the contractor 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 at the High Court, which was unsuccessful. The contractor was granted a decree for Sh15,458,069 as the outstanding debt plus interest and costs at that particular time.

However, EACC filed an application seeking to join the proceedings to immediately stop further execution and proclamation of the school property.