Court ruling paves way for auction of Matili Institute's assets

The judgment now paves the way for the private developer, Ramagon Construction Company, to proceed with the planned auction. 

According to court papers obtained by Citizen Digital, the Commission sought Lady Justice Rose Ougo to set aside the previous judgment that awarded the private company Ksh.15.4 million for outstanding debt arrears. 

Investigations carried out by EACC established that the debt was nonexistent and fraudulent, as the institution had already settled all overdue payments. 

Court documents revealed that Matili Institute awarded a Ksh.29.3 million tender for the construction of Twin Workshop Complex to the private developer on July 12, 2011. 

The figure was later changed to Ksh.58.9 million to facilitate the expansion of the complex. Upon completion, Ramagon Construction Company handed over the institution on July 16, 2013. 

At the time, the institution paid the private developer Ksh.49.9 million, leaving a Ksh.9 million balance. 

EACC, in its findings, established that the institution paid the remaining balance in instalments between November 14, 2016, and April 5, 2017, at a time when the private developer had already filed a civil suit at the lower court. 

The commission alleged that the contractor concealed the crucial evidence at the lower court and purported to sue the institution, claiming payment of a non-existent debt. 

The contractor also served the institution with a notice to auction 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 offset the debt. 

The institution's fate is now uncertain, as the planned auction places the education of more than 10,000 students at risk.