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MPs demand special audit of IEBC’s Sh3.9 billion legal debt

MPs demand special audit of IEBC’s Sh3.9 billion legal debt
IEBC CEO Marjan Hussein Marjan. PHOTO/IEBC X
In Summary

A significant portion, Sh2.7 billion, is linked to legal fees owed to at least a dozen law firms, while the rest includes Sh360 million for logistics, mostly owed to the Postal Corporation of Kenya, and Sh920 million under other miscellaneous claims.

A parliamentary committee has raised the alarm over the Independent Electoral and Boundaries Commission’s (IEBC) pending bills, urging a special audit to verify the authenticity of the claims, especially those related to legal services.

The Justice and Legal Affairs Committee (JLAC) of the National Assembly wants the IEBC to produce original documents supporting the Sh3.9 billion debt it currently carries.

A significant portion, Sh2.7 billion, is linked to legal fees owed to at least a dozen law firms, while the rest includes Sh360 million for logistics, mostly owed to the Postal Corporation of Kenya, and Sh920 million under other miscellaneous claims.

In its report, the committee raised questions over the credibility and possible inflation of the claims.

“The committee, cognisant of its oversight mandate, has directed the IEBC to submit primary documents in support of the pending bills, especially on legal claims,” the report states.

Among the top law firms awaiting payment from the IEBC is Mukele Moni and Company Advocates, owed Sh285.57 million for legal work dating back to 2013.

Other large claims include Garane and Somane Advocates (Sh161 million), G and A Advocates (Sh154.9 million), and Lubullelah and Associates (Sh115.61 million).

The debts relate to representation in election petitions, drafting affidavits, administration of oaths, matters before the Public Procurement and Review Board, arbitration, and compensation, among other services.

After reviewing IEBC’s 2023–2024 budget, JLAC said it remained unconvinced by the justifications provided and warned that the commission’s failure to settle its debts was straining relations with suppliers.

The committee further questioned the lack of a standard fee structure for lawyers hired to represent the commission in court.

The committee, led by Tharaka MP Gitonga Murugara, has asked the IEBC to present all supporting documents for scrutiny before deciding whether to recommend a special audit by the Auditor-General.

“The documents would be scrutinised to ascertain whether the auditor general should conduct a special audit,” the report adds.

The committee also emphasised the need for the electoral agency to regulate legal fees and consider using its own in-house legal team for some of the cases.

“JLAC has stressed the need for the commission to standardise the fees charged by the law firms and engage in-house lawyers to undertake some of the petitions,” the report notes.

IEBC CEO Hussein Marjan recently told the Senate that the commission is facing a serious cashflow problem, making it difficult to clear its debts.

He said the pressure to pay court awards and legal fees is already affecting preparations for the 2027 general elections.

Part of the debt includes Sh554 million from the 2022 presidential election petition in which Raila Odinga challenged the election of President William Ruto. As of June 2024, the agency owed Sh1.9 billion to lawyers who handled election-related petitions from the 2022 polls alone.

This includes Sh56 million for governor petitions, Sh9.2 million for Senate petitions, Sh147.5 million for cases involving members of the National Assembly, and Sh13.9 million for petitions involving woman representatives.

The commission also spent Sh113.9 million on legal fees for 79 petitions challenging the election of Members of County Assemblies.

The IEBC has also indicated plans to pursue prominent political figures through auctioneers to recover over Sh400 million in unpaid court awards.

According to the agency, court awards dating back to 2013 and 2017 remain unsettled, totalling Sh403 million. Of this, Sh104 million relates to 2013 petitions, while Sh299 million stems from the 2017 election disputes.

Separately, the Public Accounts Committee has also raised concerns about the commission’s financial practices, citing a lack of transparency in how law firms are hired and compensated.

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