EACC arrests three Ramagon directors over Sh59m Matili Institute fraud

The Ramagon directors at the EACC regional office in Bungoma. [Juliet Omelo, Standard]

The Ethics and Anti-Corruption Commission (EACC) has arrested three directors of Ramagon Construction Company Limited in connection with ongoing investigations over alleged procurement irregularities and fraud related to the construction of a twin workshop complex at Matili Technical Training Institute (MTTI) in Bungoma County.

Abdi Barre Abdi, Hassan Bare Abdi, and Nagenye Mohamud Dahir were arrested on Tuesday by EACC officials.

According to EACC, the company directors conspired with public officials and irregularly inflated the original contract value from Sh29.3 million to Sh59 million, resulting in an overpayment for services that were not rendered.

The suspects are also accused of falsely claiming a further Sh9 million, leading to the fraudulent auction of Matili Institute's driving school motor vehicle, valued at Sh5.4 million, for Sh1.2 million.

The three were apprehended at the Bungoma police station and recorded statements, and later escorted to EACC Headquarters for further probe.

They were also taken to their residences where detectives, armed with court orders, conducted search operations and carted away documents and equipment believed to be linked to the Matili tenders.

The Commission said that it will submit its findings to the Director of Public Prosecutions (DPP) with recommendations for criminal charges and asset recovery.

Bungoma High Court Judge Lady Justice Rose Ougo, in her ruling, had declined to issue the Orders sought by EACC to stop the auction of Matili Technical Training Institute, paving the way for the contractor to proceed with the planned auction.

On Friday, Students and activists in Bungoma County expressed shock and outrage at Justice Ougo's ruling that permitted the Ramagon Contractors to seize and auction the assets of Matili Technical Institute, over a debt which the Ethics and Anti-Corruption Commission had strongly opposed in court, terming it fraudulent and non-existent.

The contractor seized and sold the Institute's training tools, electronic equipment, power generators, and food supplies after the auctioneer's proclamation notice expired on Thursday.

In its court papers, EACC had revealed that its investigation uncovered a deceptive scheme by Ramagon Construction Company to falsely claim money for a debt that had already been settled in 2017.

The Matili Institute has over 10,000 students doing various courses.

The commission said that upon completion of the investigation, it would recommend criminal prosecution of the suspects and file a suit for the recovery of the public assets.

The situation has left the institute in a critical state, with increasing concerns among stakeholders and local leaders about the potential closure of the school.

EACC has since moved to court seeking to invalidate the claim by Ramagon Construction Company, terming it fraudulent and non-existent.

Matili Institute students, led by Tom Masibo, condemned the Court decision to okay the contractor to proceed with the Institution's auctioning, arguing that it is an injustice.