The Independent Electoral and Boundaries Commission (IEBC) has been granted more time to clear a debt of Sh200 million owed to WPP Scangroup for services offered to the electoral agency in 2017.
Appearing before High Court judge Roselyne Aburili on September 30, IEBC Chief Executive Officer Marjan Hussein Marjan said they had not paid the firm because its request for funding had been declined by the Treasury.
Through his lawyer, Mr Marjan asked the court to join Treasury PS in the proceedings, but Justice Aburili directed him to file a formal application.
The judge directed him to appear before court on October 25 for mitigation, if the funds would not have been paid by then.
Scanad Africa, which is part of WPP Scangroup, obtained a court order in 2021 directing the electoral agency to pay Sh248 million for the services offered during the 2017 general elections.
The marketing and communications firm provided strategic communication and integrated media campaign services to the IEBC ahead of the 2017 general election.
Mr Marjan had confirmed that the commission paid Sh50 million in December 2023 and had sought for more funds from the Treasury.
“The applicant (Scanad) has established to the required standard that the CEO (Marjan) is in contempt of court order and is hereby found guilty of contempt of court. He is directed to appear in court for mitigation and show cause why the court should not punish him as provided for in law,” said the judge in a ruling on June 11.
Court documents show that the firm was tapped to provide strategic communication and integrated media campaign and consultancy services to the electoral agency.
The contract was signed between the parties on July 27, 2017, setting out the rights and obligations of each party.
On April 26, 2021, Scanad obtained a judgment of Sh245 million against the IEBC. The amount was inclusive of value added tax and costs of the suit.
Mr Marjan has stated that the commission sought advice from the Treasury and the money was considered a pending bill, and therefore directed to settle the amount within its annual budgetary allocation.
He said the commission had made efforts and paid the Sh50 million in December 2023 and the failure to clear the balance was not arbitrary or unreasonable.
Justice Aburili, however, said that there was no evidence that the commission had allocated any money in its annual budget for the settlement of the debt.
The judge said that the commission's failure to pay suppliers was troubling, given that it is preparing for the next election.
