The Ethics and Anti-Corruption Commission (EACC) arrested three directors of Ramagon Construction Company Limited—Abdi Barre Abdi, Hassan Bare Abdi, and Nagenye Mohamud Dahir, in connection with ongoing investigations into procurement irregularities and fraud related to the construction of a twin workshop complex at Matili Technical Training Institute (MTTI) in Bungoma County.
The investigation revealed that the company, in collusion with public officials, irregularly inflated the original contract value from Sh29.3 million to Sh59 million, resulting in an overpayment of Sh22 million for services not rendered.
Additionally, the company falsely claimed a further Sh9 million, leading to the fraudulent auction of Matili Institute’s driving school motor vehicle, valued at Sh5.4 million, for Sh1.2 million.
The suspects were apprehended in Bungoma and are currently being processed at EACC Headquarters and the Western Regional Office.
The Commission will submit its findings to the Director of Public Prosecutions with recommendations for criminal charges and asset recovery.
The college faces imminent closure threatening the studies of over 10,000 students enrolled for various courses.
This is after the contractor commenced auctioning of the Institute’s properties over an alleged Sh15 Million debt, which the commission is challenging in court terming it non-existent and fraudulent.
Lady Justice Rose Ougo at Bungoma High Court rejected EACC application seeking orders to suspend the auction.
In its court papers filed under certificate of urgency, EACC detailed how Ramagon Construction Ltd, owned by Abdi Barre Abdi, Hassan Bare Abdi and Nagenye Mohamud Dahir, devised a deceptive scheme to falsely claim money that had already been paid to them by the training institution.
The company subsequently secured a High Court judgment on January 15, 2024 which EACC now wants set aside.
The contractor has already sold the Institute sold the Institute’s property used for training students undertaking driving courses.
The college managers hope the court case will save them from imminent closure.
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