EACC seeks to be enjoined in Sh58 million contract in Bungoma

The Ethics and Anti-Corruption Commission (EACC) has filed an application before the High Court in Bungoma seeking to be enjoined as an interested party in an appeal involving a Sh58.9 million construction contract awarded to a private firm by a government institution.

The application arises from a contract awarded in the 2010/2011 financial year to Ramagon Construction Company Ltd by Matili Technical Training Institute for the construction of a twin workshop complex.

The project, initially valued at Sh29.3 million, was later revised to Sh58.9 million to accommodate further expansion of the construction.

In its application, EACC says it received a complaint about corrupt conduct and alleged irregularities in the award and execution of the contract.

Upon investigation, the commission allege it found that by the time the contractor handed over the completed project in 2013, only Sh9 million remained unpaid.

EACC claims this balance was cleared by 2017.

Despite the alleged payment, EACC says, the contractor later filed a civil suit and obtained a court decree in 2020 awarding them over Sh15 million, inclusive of interest and legal costs.

Execution proceedings have since commenced, with Eshikhoni Auctioneers allegedly selling a government vehicle to offset part of the debt.

“The Respondent Eshikhoni Auctioneers have since proclaimed and sold a Motor Vehicle Registration No. KDA 556P Suzuki Jimmy to cover part of their decree,” read court documents.

EACC investigator Elias Kipyego, contend that the commission has a statutory mandate to protect public resources and prevent misuse of public funds through fraudulent claims.

Kipyego alleged that allowing Ramagon Construction to execute against the technical institute on a debt that was already paid would amount to economic crime and an abuse of the court process.

“The public stands to suffer economic loss, and the institution risks being unfairly penalized,” Kipyego stated.

“We are seeking to be enjoined so the court can consider the full facts before making a final decision.”

The commission argues that it has a direct and substantial interest in the matter and that its participation is necessary for the court to effectively and completely determine the “questions and issues raised finally and effectually”.

“The proposed interested party’s primary role would be to assist the court to make a just determination on the issues and uphold the rule of law and public interest,” said Kipyego.