Three construction company bosses arrested over Ksh.59M Matili Institute saga

The Ethics and Anti-Corruption Commission (EACC) on Wednesday arrested three directors of Ramagon Construction Company Limited in an ongoing probe on the under siege Matili Technical Training Institute (MTTI) which is facing auction.

The three; Abdi Barre Abdi, Hassan Bare Abdi, and Nagenye Mohamud Dahir, face accusations of procurement irregularities, theft of public funds, and fraudulent acquisition of public property concerning tenders awarded to their company for the construction of a twin workshop complex at the institution.

According to investigations by the EACC, the trio colluded with public officials to defraud the institution of over Ksh.22 million during the 2010/2011 financial year by inflating the value of the contracts awarded.

“The directors of Ramagon Construction Company Limited conspired with public officials to irregularly vary Tender No. MTTI/MOHEST/2/2010-2011, originally valued at Ksh.29,311,659, to Ksh.58,997,852 for the construction of the twin workshops complex at Matili Technical Training Institute,” the EACC stated.

“Ramagon Construction Company Limited illegally received an overpayment of Ksh.22,038,736 for services not rendered.”

The commission also accuses the company of defrauding the institute of Ksh.9 million through a false claim, which it says resulted in an unlawful auction of a motor vehicle for the driving school, valued at Ksh.5.4 million, for Ksh.1.2 million.

The three have since been processed and are now awaiting arraignment.

EACC forward its investigations to the Office of the Director of Public Prosecutions (ODPP), recommending criminal charges and asset recovery.

The development follows protests by students and activists in Bungoma County who have been expressing anger following the court ruling on Thursday last week, which declined to stop the auction of properties belonging to Matili Technical Training Institute by a private developer. 

Bungoma High Court Judge Rose Ougo, in her judgement, gave a go-ahead to the contractor to proceed with the planned auction, to seize and sell the institute's training tools, electronic equipment, power generators, and food supplies.

EACC had sought orders to stop the auction, but Justice Ougo declined to set aside the previous judgment that awarded the private company Ksh.15.4 million for outstanding debt arrears. 

Through advocate Ronald Kibet, EACC had revealed that their investigation uncovered a deceptive scheme by Ramagon Construction Company, owned by Abdi Barre Abdi, Hassan Bare Abdi, and Nagenye Mohamud Dahir, to falsely claim money for a debt that had already been settled in 2017.

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