The Ethics and Anti-Corruption Commission (EACC) has launched investigations into auctioneer firms implicated in the fraudulent disposal of assets belonging to Matili Technical Training Institute.
In a statement on Tuesday, May 20, the agency said the firms fraudulently sold a vehicle valued at Ksh5.4 million for just Ksh1.2 million.
The EACC confirmed that auctioneers behind the controversial sale had recorded statements.
“Following summons by the Ethics and Anti-Corruption Commission (EACC), owners of auctioneer firms involved in the sale of assets for Matili Technical Training Institute over a fake and fraudulent debt presented themselves to EACC detectives for statement recording,” the statement read.
Among those summoned were Brown Tsuma Mukanda and Kennedy Kweyu Shikuku who are proprietors of Eshikhoni Auctioneers.
The duo reportedly received proceeds from the underpriced sale of a Matili driving school vehicle.
Also summoned was Samson Itonde, owner of Dominion Auctioneers, who was contracted by Ramagon Construction Company Ltd to seize and auction additional Matili assets.
“They were summoned alongside Samson Itonde, owner of Dominion Auctioneers, who is currently engaged by Ramagon Construction Company Ltd to seize and auction more assets on account of a payment claim that EACC investigations have since established to be fake and non-existent,” the statement continued.
EACC explained that the three are being questioned as part of ongoing investigations into among other allegations unlawful acquisition of public property.
“The auctioneers are being questioned as part of ongoing investigations into allegations of corruption, unlawful acquisition of public property, and conspiracy to commit economic crimes related to public properties belonging to Matili Technical Training Institute,” the statement further read.
The investigation follows the arrest of three directors of Ramagon Construction Company Limited, namely Abdi Barre Abdi, Hassan Bare Abdi, and Nagenye Mohamud Dahir last Thursday.
EACC said the trio is under scrutiny for procurement irregularities, theft of public funds, and fraudulent acquisition of public property in connection to tenders awarded for construction work at the institute.
“Preliminary investigations have established that the directors of Ramagon Construction Company Limited conspired with public officials to irregularly vary Tender No. MTTI/MOHEST/2/2010-2011, originally valued at Ksh29,311,659, to Ksh58,997,852 for the construction of the twin workshops complex at Matili Technical Training Institute in Bungoma County during the 2010/2011 financial year. This led to an overpayment of Ksh22,038,736.18 for services not rendered,” the statement read.
EACC also revealed a further scheme by the company to falsely claim an additional Ksh9 million from the institute, resulting in the unlawful disposal of public property through auction firms.
“Further, the company devised a fraudulent scheme to falsely claim an additional KES 9,071,000 from Matili Technical Training Institute, which had already been paid to them, leading to the fraudulent disposal of public property through Eshikhoni Auctioneers and Dominion Auctioneer,” the statement added.
