IEBC has terminated a tender for the installation of an Integrated Elections Management System for the August 8 polls.
Last Thursday, the electoral agency was in the process of with French firm Gemalto SA.
The system is meant to integrate the existing biometric voter registration, the biometric voter identification, the electronic results transmission and the political party and candidate registration systems.
But in a letter to the firm on Tuesday, IEBC's Ezra Chiloba noted that the firm's bid was "significantly above the budgetary provision".
The CEO also said litigation was a reason for the cancellation.
"Given the remaining legal steps to conclude the tender, it will be almost impossible for the commission to execute its mandate within the statutory timelines," the latter states.
According to the Election Laws, IEBC should have the technology in place by the end of March for use on May 10.
Top Jubilee officials have been accused of influencing the award of the tender to a firm some termed as having "questionable capacity".
It also emerged that Gemalto SA lacks technical capacity to deliver the complex integrated technology required for the general election.
The firm has no history of dealing with elections and in fact, specialises in mobile telephony and banking. However, it would supply Integrated Elections Management Systems, the fulcrum of the polls.
The opposition has long been saying the election will be rigged, especially through manipulated and compromised technology.
The award is being pushed by two influential Jubilee leaders — one in the executive and the other in the Parliament, sources have told the Star.