Why Kenyan Firm Won’t Receive World Bank Funded Projects

Why Kenya’s Ernest & Young Won’t Receive World Bank Funded Projects

The Kenyan branch of the global consulting and professional services firm, Ernest & Young, has been barred from participating in World Bank Group funded projects for the next 30 months.

This comes after the company acknowledged improperly accounting for payments and failing to disclose conflicts of interest in multiple projects.

The 30-month embargo is part of a settlement the firm agreed on with the multilateral lender.

Environment for Private and Financial Sector Development

The World Bank imposed this debarment concerning misconduct within the Somali Core Economic Institutions and Opportunities Program (SCORE) and the Second Public Financial Management Capacity Strengthening Project (PFM II) in Somalia.

The SCORE initiative aimed to enhance the environment for private and financial sector development, as well as stimulate private investment and job creation.

Meanwhile, PFM II sought to establish and reinforce systems for domestic revenue mobilization, expenditure control, and accountability in the Federal Government of Somalia, Puntland State of Somalia, and Somaliland State.

EY Kenya neglected to reveal a conflict of interest during the selection and execution of four contracts under the SCORE and PFM II projects, as well as the involvement of an agent in those contracts.

Also Read: World Bank Maintains Kenya’s Growth Projection at 5% in 2024

During the implementation of one of the contracts, EY Kenya allocated funds for allowances to be paid to project officials, constituting fraudulent and corrupt practices according to the WBG Consultant Guidelines.

Comply With Specified Integrity Conditions

As a result of the debarment, EY Kenya and its affiliates are ineligible to participate in World Bank Group-funded projects and operations for the next two and a half years.

This is part of a settlement agreement in which the company acknowledges its culpability for misconduct and agrees to comply with specified integrity conditions in order to be released from debarment.

These conditions include devising and implementing an integrity compliance program aligned with the principles outlined in the WBG Integrity Compliance Guidelines.

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

In light of the company’s admission of misconduct and cooperation, as well as aspects of its existing integrity compliance program and voluntary remedial actions, the settlement agreement allows for a reduced period of debarment.

Other Kenyan Firms Barred From Funding

It is worth noting that EY Kenya’s debarment qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions signed on April 9, 2010.

In addition to EY Kenya, Techno Brain Kenya also faced a 28-month debarment in 2020, alongside Techno Brain UAE, due to their involvement in obtaining and altering confidential bidding documentation to influence the awarding of a contract in their favor.

Despite not meeting tender requirements, Techno Brain Kenya was awarded the contract, leading to a substantial reduction in the extent of work provided under the contract.

July 3, 2024

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.