EACC goes for auctioneers in Matili Institute saga
Owners of auctioneer firms involved in the sale of assets for Matili Technical Training Institute over a fake and fraudulent debt were Tuesday grilled in a probe into the saga.
This follows summons by the Ethics and Anti-Corruption Commission (EACC). The owners presented themselves to EACC detectives for statement recording on Tuesday
They include Brown Tsuma Mukanda and Kennedy Kweyu Shikuku, proprietors of Eshikhoni Auctioneers, who benefited from the proceeds of the sale of a Matili driving school vehicle worth Sh5.4 million, which was sold for Sh1.2 million.
They were summoned alongside Samson Itonde, owner of Dominion Auctioneers, who is currently engaged by Ramagon Construction Company Ltd to seize and auction more assets on account of a payment claim that EACC investigations have since established to be fake and non-existent.
The auctioneers are being questioned as part of ongoing investigations into allegations of corruption, unlawful acquisition of public property, and conspiracy to commit economic crimes related to public properties belonging to Matili Technical Training Institute.
The summons followed the arrest of three directors of Ramagon Construction Company Limited who include Abdi Barre Abdi, Hassan Bare Abdi, and Nagenye Mohamud Dahir.
They are being investigated over procurement irregularities, theft of public funds, and fraudulent acquisition of public property concerning tenders awarded to Ramagon Construction Company Limited.
The Commission officials said they recorded their statements and released them on bond, with a requirement to report back to EACC on May 29, 2025 for further investigation.
Preliminary investigations have established that the directors of Ramagon Construction Company Limited conspired with public officials to irregularly vary Tender No. MTTI/MOHEST/2/2010-2011, originally valued at Sh29,311,659, to Sh58,997,852 for the construction of the twin workshops complex at Matili Technical Training Institute in Bungoma County during the 2010/2011 financial year.
This led to an overpayment of Sh22,038,736.18 for services not rendered. Further, the company devised a fraudulent scheme to falsely claim an additional Sh9,071,000 from Matili Technical Training Institute, which had already been paid to them, leading to the fraudulent disposal of public property through Eshikhoni Auctioneers and Dominion Auctioneer. 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.