Ernst & Young LLP Kenya (EY Kenya) has been subject to a 30-month debarment by the World Bank Group (WBG) following allegations of misconduct related to projects in Somalia. The debarment stems from EY Kenya’s involvement in the Somali Core Economic Institutions and Opportunities Program (SCORE) and the Second Public Financial Management Capacity Strengthening Project (PFM II). These projects aimed to enhance private sector development and financial management systems in Somalia, respectively.
The World Bank found that EY Kenya failed to disclose a conflict of interest during the selection and execution of four contracts under these projects. Additionally, the firm allegedly engaged an undisclosed agent in these contracts and facilitated allowances for project officials, actions deemed as “fraudulent and corrupt practices” under the WBG’s Consultant Guidelines.
In response to the findings, EY Kenya entered into a settlement agreement with the WBG, acknowledging its misconduct and committing to specific integrity compliance measures. These measures include developing an integrity compliance program aligned with the WBG’s guidelines and cooperating with the WBG’s Integrity Vice Presidency. The firm has also taken voluntary actions, such as implementing disciplinary measures against implicated staff and voluntarily refraining from bidding on WBG contracts during the negotiation period.
The 30-month debarment prohibits EY Kenya and its affiliates from participating in any WBG-financed projects during this period and may extend to other multilateral development banks under an agreement for mutual enforcement of debarment decisions. This action underscores the WBG’s commitment to maintaining integrity and transparency in its operations and partnerships globally.
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