The Ethics and Anti-Corruption Commission (EACC) has moved to the High Court in Bungoma, seeking to be enjoined in an ongoing case involving Matili Technical Training Institute in Bungoma County and a private developer.
According to court documents obtained by Citizen Digital, the private developer, Ramagon Construction Company, is set to auction the institution’s property in line with a High Court judgment that awarded the company Ksh.15.4 million for outstanding debt arrears.
EACC, however, in its findings, alleges that the debt was nonexistent as the institution had already settled the payments.
The contract sum was later changed to Ksh.58.9 million to facilitate further expansion of the Complex.
The contractor completed the project and handed it over to the institution on July 16, 2013.
At the time, the contractor claimed to have been paid Ksh.49.9 million, leaving a balance of Ksh.9 million. The institution settled the debt in instalments of Ksh.500,000 every term beginning May 2014.
Court documents showed that the payment was delayed after the institution’s new chairman sought documentation for the project.
The institution wrote to the company, informing it that they would pay Ksh.1 million and then instalments of Ksh.600,000 per term.
Ramagon Company, however, cited that the institution failed to honour the pledge, thus cited a breach of contract and opted to take the matter to court.
After reviewing the evidence, the Chief Magistrate’s Court ruled in favour of Ramagon Company and ordered the institution to pay Ksh.15.4 million, being the alleged debt plus interests and costs at that particular time.
“In the end, I enter judgment in favour of the plaintiff (Ramagon Company) and against the defendants jointly… The defendants’ counterclaim is dismissed with cost,” Chief Magistrate Peter Gesora ordered in December 2022.
The High Court in Bungoma has considered the Commission’s application to join the case and directed the parties to be served and submissions to be made before June 19, 2025.
