AG opposes auction of Matili Institute's assets by private developer

The High Court in Bungoma has certified as urgent an application filed by the Office of the Attorney General seeking to stop the auction of properties belonging to the Matili Technical Training Institute.

The planned auction threatens the studies of over 10,000 students, whose fate now hangs in the balance as the institution faces imminent closure.

On Monday, Lady Justice Rose Ougo of the Bungoma High Court certified the case as urgent and ordered that it be served immediately, with all parties filing responses within three days. The parties were ordered to appear before the court on May 27, 2025, to set a hearing date.

In the warrants of attachment served on the college on Wednesday, April 30, and seen by Citizen Digital, the contractor seeks to acquire the institution's assets, including training tools and equipment, all electronic devices, power generators, and foodstuffs procured for students for the entire school term to repay a debt of Ksh.15.6 million, citing a High Court judgment delivered on January 15, 2024.

In the High Court ruling, the contractor was awarded Ksh.15.4 million for outstanding debt arrears accruing for payment for the completion of a Twin Workshop Complex at Matili Technical Training Institute.

The Attorney General moved to the High Court on Friday, seeking orders to temporarily suspend the High Court's judgment, citing the discovery of new evidence by the Ethics and Anti-Corruption Commission (EACC) which indicated that the debt is non-existent and involves theft of public funds.

In the court papers filed under a certificate of urgency, the Office of the Attorney General, through Deputy Chief State Counsel Stafford Nyauma, told the court that investigations conducted by the EACC revealed that the contractor was actually paid the alleged outstanding debt of Ksh.9,071,000 in installments between 2016 and 2017.

The AG stated that by the time the claim was filed, the debt had been fully paid, rendering the contractor's claim fraudulent and constituting a blatant theft of public funds.

“The institution currently caters for over 10,000 students from all corners of the Republic. Any disruption of its activities would cause a ripple effect beyond the institution's boundaries, prejudicing the right to education and the public interest,” the AG said in court papers.

“It is apparent that the respondent took advantage of the honorable court and conspired with the previous Board of Management of the TVET institution to conceal evidence of payment, and subsequently sued the institution claiming payment of a non-existent debt, as disclosed by the Interested Party (EACC) in their joinder application.”

The Attorney General sought the court orders to halt the implementation of the judgment pending the hearing of an application by EACC seeking to be enjoined in the suit as an interested party to introduce the new evidence.

“The Interested Party has since filed an application for joinder herein dated March 18, 2025, which is pending determination before this Honourable Court and is fixed for mention on June 19, 2025, where the Interested Party avers that pursuant to its mandate, it received and conducted investigations into allegations of corruption, theft of public funds and fraudulent conduct in respect to the tender for the Erection and Completion of a Twin Workshop Complex at Matili Technical Training Institute awarded to the Respondent herein at Ksh.58,997,852/=, which is the basis of the instant claim,” noted the State Law Office.

The AG's office also claimed that the contractor schemed with the institution's previous board of management to conceal evidence of payment and opted to sue the institution to receive a non-existent debt.

“Due to the Interested Party’s findings, it is clear that the Respondent took advantage of the Honourable Court and conspired with the previous Board of Management of the TVET Institute to conceal evidence of payment and purported to sue the institution claiming payment of a non-existent debt as disclosed by the Interested Party in their Joinder application,” added court papers.