Bungoma High Court grants permission to auction Matili Institute assets

Bungoma High Court grants permission to auction Matili Institute assets
Matili Technical Training Institute. PHOTO/Matili Website
In Summary

Bungoma High Court Judge Rose Ougo ruled in favor of Ramagon Construction Company, the contractor seeking to recover the unpaid amount.

Students and activists in Bungoma County have voiced their outrage after a court ruling on Thursday allowed the auction of assets belonging to Matili Technical Training Institute due to an outstanding debt owed to a private developer.

Bungoma High Court Judge Rose Ougo ruled in favor of Ramagon Construction Company, the contractor seeking to recover the unpaid amount.

This decision permits the contractor to proceed with the sale of the Institute's property, including training equipment, electronic devices, power generators, and food supplies, as the auctioneer's notice period expired on Thursday.

The following day, students organized protests outside the institution, urging the government to step in and protect the future of over 10,000 students currently enrolled at the Institute.

"We are here to stand with our institution, no property is going to be touched, and we are here to support our Principal Judy Santei,” one of the student activists," Lumumba, stated.

"We will not stand by and allow Ramagon to take control of our school, and we urge the national government to take swift action in protecting this institution," said one of the students.

Another student, Tom Masibo, added, "This school has played a key role in our education and co-curricular activities, and we will not let Ramagon take it from us."

Michael Chebukati, another student, expressed his frustration: "The vehicle that was taken from us must be returned. The students in the driving school are facing significant challenges because they are unable to complete their practical lessons."

The Ethics and Anti-Corruption Commission (EACC) had requested an injunction to prevent the auction, but Justice Ougo upheld the earlier ruling that awarded the private company Ksh. 15.4 million due to unpaid debt arrears.

Through their advocate, Ronald Kibet, the Ethics and Anti-Corruption Commission (EACC) exposed a fraudulent scheme orchestrated by Ramagon Construction Company, which is owned by Abdi Barre Abdi, Hassan Bare Abdi, and Nagenye Mohamud Dahir. The company falsely sought payment for a debt that had already been cleared in 2017.

EACC revealed that the claimed debt was fabricated, as the institution had fully settled all outstanding amounts.

The contractor allegedly withheld key evidence in the lower court, falsely suing the institution for a non-existent debt.

Court records show that Matili Institute awarded a Sh29.3 million tender for the construction of the Twin Workshop Complex to Ramagon Construction on July 12, 2011.

This amount was later revised to Sh58.9 million to accommodate an expansion of the complex. Upon completion, the project was handed over to the institution on July 16, 2013, with a payment of Sh49.9 million, leaving a balance of Sh9 million.

EACC’s investigation found that the institution cleared this remaining balance in instalments between November 14, 2016, and April 5, 2017, even though the contractor had already initiated a civil suit in the lower court during that time.

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