Suppliers pain as IEBC fails to pay Sh2.3bn in five years

Independent Electoral and Boundaries Commission (IEBC) Acting CEO Marjan Hussein Marjan. PHOTO | JEFF ANGOTE | NMG

What you need to know:

  • The Independent Electoral and Boundaries Commission (IEBC) said out of the outstanding bill, lawyers and legal firms are owed Sh1.9 billion in legal fees.
  • Appearing before the Public Accounts Committee (PAC), Mr Murjan said the pending bills accrued due to lack of funds from the Treasury for payments, which had been planned and processed up to the internet banking level.
  • He said the commission has been unable to settle the pending bills which have continued to adversely affect the budgetary provisions for subsequent periods as some of them have to be paid as a first charge.

The electoral agency still owes Sh2.3 billion in pending bills from the last General Election, underlying the pain facing suppliers to the poll entity.

The Independent Electoral and Boundaries Commission (IEBC) said out of the outstanding bill, lawyers and legal firms are owed Sh1.9 billion in legal fees.

“Pending bills have come down to Sh2.3 billion from an outstanding bill of Sh3,124,814,000. These pending bills relate to the 2017 General Election and fresh presidential elections,” IEBC acting chief executive Marjan Hussein Marjan told MPs.

Appearing before the Public Accounts Committee (PAC), Mr Murjan said the pending bills accrued due to lack of funds from the Treasury for payments, which had been planned and processed up to the internet banking level.

“The commission was consequently forced to reverse the payments from the Internet Banking payment system,” Mr Murjan told the committee.

He said the commission has been unable to settle the pending bills which have continued to adversely affect the budgetary provisions for subsequent periods as some of them have to be paid as a first charge.

“Out of the Sh2.3 billion pending bills, Sh1.9 billion is legal fees while the balance is attributed to election petitions which were not anticipated and hence beyond the control of the commission,” Mr Murjan said.

He asked the committee chaired by Ugunja MP Opiyo Wandayi to assist the commission to get funds from the Treasury to settle the claims by lawyers.

“We are heading to the next General Election in August and we may have problems with our suppliers and legal firms for failure to settle bills,” Mr Murjan said while responding to audit queries.

Auditor General Nancy Gathungu has flagged a Sh3.12 billion pending bill. The pending bill stood at Sh4.33 billion in the year to June 2019.

Mr Murjan said the Sh1.9 billion legal fees have been validated by a multi-agency task force on pending bills but there are no funds from the Treasury to settle them.

“The last time you appeared before the Justice and Legal Affairs committee, I remember we rejected this pending claim for lawyers. Some had put in a fee note of between Sh30 million and Sh45 million for a single brief,” Rarieda MP Otiende Amollo said.

“You must demonstrate to us that these lawyers or law firms are not asking unreasonable amounts contrary to the Advocates Remuneration Order for us to help you get money to clear the pending bills,” he said.

Mr Wandayi sought to know whether the Sh1.9 billion legal fees claim is attracting interest and directed Mr Murjan to table the list and amounts each lawyer is demanding within a week.

“I know that one lawyer or law firm wanted to charge interest,” Mr Murjan said.

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