Three directors of a construction company are in trouble with the law over a sensational public funds scandal involving Matili Training Institute (MTTI) in Bungoma County.
The directors were nabbed by officers from the Ethics and Anti-graft Commission (EACC) on allegations of procurement irregularities and financial fraud.
According to EACC, the fraud scheme was linked to a construction project at the government-run institution, which was initially awarded a sum of Ksh29 million.
The EACC reports that the tender for the construction of a twin workshop complex at MTTI was later inflated to Ksh59 million - a figure which was nearly double the original cost. Questions were raised, particularly because there was no justification behind the hike.
Further, the anti-graft body also revealed that investigations uncovered a collusion between the contractors and unidentified public officials, which led to an overpayment of Ksh22 million for the overly exaggerated services.
Besides the inflated costs, the construction company is also said to have severely dented MTTI's finances after claiming a further Ksh9 million from the institution, resulting in MTTI's driving school vehicle getting auctioned.
The motor asset, which was valued at Ksh5.4 million, was auctioned for a mere Ksh1.2 million in an act which the EACC claims was a deliberate attempt to recoup the non-existent claims.
"The suspects were apprehended in Bungoma and are currently being processed at EACC Headquarters and the Western Regional Office. The Commission will submit its findings to the Director of Public Prosecutions with recommendations for criminal charges and asset recovery,' EACC explained.
If found guilty, the accused could face criminal prosecution and asset recovery proceedings, as the EACC confirmed it would recommend charges and take legal steps to recover the misappropriated public funds.
Notably, the apprehension of the suspects came just days after students and activists expressed outrage after a court allowed a private developer to seize an institute's assets after the EACC tried to contest the auction in court.
This was the latest case involving government officials embroiled in fraud scandals, coming just days after a staff member at Nairobi City Water and Sewerage Company (NAWASCO) was nabbed over allegations of forgery of an academic certificate to land a lucrative job, which earned him millions.
The certificate was purported to have been issued by the Kenya National Examinations Council (KNEC)—thereby helping the accused to land the job at NAWASCO.
