Three suspects have been arrested in Bungoma over allegations of conspiring to defraud Matili Technical Institute of millions of shillings in a tender scandal involving a construction contract. The Ethics and Anti-Corruption Commission (EACC) detained and interrogated the three directors of Ramagon Construction Company, who are suspected to have played a central role in manipulating the tender process and inflating contract costs.
The arrested individuals Abdi Barre Abdi, Hassan Barre Abdi, and Nagenye Mohamoud Dahir were held for over fifteen hours before being released on police bail as investigations continue. The case centers on a construction tender initially valued at 29 million Kenyan shillings but allegedly fraudulently inflated to 59 million shillings. This inflated contract led to overpayments for services that were never delivered, severely affecting the operations and financial standing of Matili Technical Institute.
According to the commission’s findings, the directors of Ramagon Construction allegedly colluded with senior government officials to manipulate the payment processes. This collusion reportedly involved claiming an extra nine million shillings above the actual cost in the bill. The fraudulent activities also extended to the questionable public auction of a vehicle that belonged to the technical institute, which was meant for student driving training.
The vehicle in question was originally valued at approximately 5.4 million shillings but was sold at auction for a mere 1.2 million shillings, raising further suspicion of corruption and undervaluation intended to benefit certain individuals at the expense of public resources. This sale has intensified concerns about mismanagement and the improper disposal of public assets.
The suspects were initially arrested in Bungoma town before being transferred to EACC offices both in Bungoma and Nairobi for further questioning and investigation. The commission has indicated that upon completing the investigation, it will recommend criminal prosecution of those found culpable and file a suit seeking the recovery of the public assets lost through these fraudulent activities.
The ongoing case has sparked alarm among stakeholders and local leaders, who fear that the scandal could jeopardize the future of Matili Technical Institute. The institution is currently in a critical state, with worries that continued financial mismanagement and corruption could force the school to close, thereby affecting students and the community that depends on its educational services.
In response to the allegations, the EACC has moved to court to invalidate Ramagon Construction Company’s claim, labeling it fraudulent and non-existent. The commission’s action aims to halt any attempts by the company to justify or legitimize the inflated contract amounts and fraudulent claims, reinforcing the commitment to hold all involved parties accountable.
This case highlights the challenges faced by public institutions in safeguarding their resources and ensuring transparent tendering and procurement processes. Corruption and collusion in public contracts not only drain financial resources but also undermine public trust and the delivery of essential services such as education.
The investigation serves as a reminder of the need for vigilance and strict oversight by regulatory bodies and the government to protect public institutions from exploitation. The recovery of misappropriated funds and the prosecution of corrupt individuals remain key priorities in restoring integrity to public procurement processes and ensuring that institutions like Matili Technical Institute can continue to serve their educational mission.
As the legal proceedings unfold, the community and education stakeholders are closely monitoring the situation, hopeful that justice will be served and that reforms will be put in place to prevent similar cases in the future. The case underscores the critical role of anti-corruption agencies in rooting out fraud and safeguarding public resources for the benefit of all citizens.