Matili Technical Training Institute, located in Bungoma County, is on the verge of closure due to the auctioning of its assets over a Ksh 15 million debt allegedly owed to Ramagon Construction Ltd.
The debt stems from a contract the institute entered into with the company in 2010 for the construction of a workshop complex. The debt claim, which was partially paid off by 2017, has since been contested by the Ethics and Anti-Corruption Commission (EACC). Matili Technical Institute could shut down following a contractor's auction of its assets, stemming from a Sh15 million debt the EACC claims is fraudulent.
According to the EACC, the claim is fraudulent, with the company allegedly concealing evidence of the payments made to it, thereby misleading the courts.
The commission has moved to court to challenge the auctioning, arguing that the debt does not exist and that the contractor is attempting to unjustly claim funds.
The dispute began when Ramagon Construction filed a suit in 2020, seeking to recover an alleged outstanding balance of Ksh 9 million for the completed construction work but EACC investigations have revealed that the debt was settled in full between 2016 and 2017, and the contractor’s claims are based on fraudulent grounds.
EACC has now asked the Bungoma High Court to set aside the judgment delivered in January 2024, which resulted in a warrant of attachment against the institute’s assets.
The auction, which includes critical training equipment, such as tools for driving courses, has already led to the sale of a motor vehicle used by the institute, further crippling its ability to operate effectively.
EACC's involvement in the case is crucial, as it seeks to safeguard public funds and prevent the wrongful transfer of public property.
The commission has filed an urgent application, citing the imminent threat of the institute’s closure due to the sale of its essential assets.
The appeal, if successful, could see the judgment reviewed and a stay of execution granted, allowing the institute to continue operating without the immediate threat of asset disposal.
This case has become a fundamental issue for both the institute and the local community, as the school provides education and vocational training to over 10,000 students, many of whom rely on it for their future employment prospects.
The court case will determine whether the institute can avoid closure and resume its educational programs.
If the application is successful, the court may also allow the introduction of new evidence that could demonstrate the fraud involved in the debt claim.
Matili Technical Training Institute’s management is hopeful that the court will intervene to prevent further asset loss and protect the interests of its students and the public. View document