Kenya: World Bank Debars Audit Firm EY Kenya On Graft Allegations

2 July 2024
Capital FM (Nairobi)
By Phidel Kizito

Nairobi — The World Bank has slapped audit firm Ernst & Young (EY Kenya) with a 30-month debarment over corruption allegations.

The debarment is linked to two projects in Somalia involving the Somali Core Economic Institutions and Opportunities Program (SCORE) and the Second Public Financial Management Capacity Strengthening Project (PFM II), both aimed at enhancing financial sector development and improving fiscal management in Somalia.

The World Bank says EY Kenya failed to disclose a conflict of interest during the selection and implementation of four contracts under these projects.

Moreover, the company was implicated in the inappropriate involvement of an agent and the provision of allowances to project officials during contract execution, which constitutes fraudulent and corrupt practices under WBG guidelines.

"The debarment makes EY Kenya and any affiliates it controls ineligible to participate in WBG-financed projects and operations," read a statement by the World Bank in part.

"It is part of a settlement agreement under which the company admits culpability for sanctionable practices and agrees to meet specified integrity compliance conditions as a requirement for release from debarment."

Subsequently, EY has agreed to the development and implementation of an integrity compliance program aligned with World Bank standards.

The company has also committed to ongoing cooperation with the WBG Integrity Vice Presidency.

Additionally, EY has refrained from bidding for World Bank-financed contracts during the negotiation of the settlement agreement.

Read the original article on Capital FM.

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