World Bank sanctions Ernst and Young, Kenya

Ernst and Young, Kenya (EY Kenya) has been debarred by the World Bank from its projects and programmes for two years over conflict of interest and corruption. The World Bank said it debarred the EY Kenya after investigations revealed it was guilty of conflict of interest and corruption in two public programmes in Somalia, according to The East African. EY Kenya was found in breach of the bank's code of conduct relating to the Somali Core Economic Institutions and Opportunities Programme (Score) and the Second Public Financial Management Capacity Strengthening Project (PFM II). ‘According to the facts of the case, EY Kenya failed to disclose a conflict of interest during the selection and implementation of four contracts under the Score and PFM II projects, and the involvement of an agent in those contracts,’ read the statement from the World Bank. ‘In addition, during the execution of one of the contracts, EY Kenya made a provision for allowances to be paid to project officials. This conduct constitutes fraudulent and corrupt practices under the World Bank Consultant Guidelines.’ The bank said EY Kenya is expected to develop and implement an integrity compliance programme that reflects the principles set out in the World Bank Integrity Compliance Guidelines. The company has also committed to continue to fully co-operate with the bank's integrity vice presidency if it is to get out of the blacklist before the end of the 30 months.

Full report in The East African