World Bank Blacklists Ernst & Young Kenya

Ernst and Young Kenya is one of the prominent consultancy and professional services firm that has now found its name in the bad books of the world bank. From latest release, Ernest & Young will miss out on World Bank Group financed projects for the next 30 months in a settlement agreement after the company admitted to accounting for illegal payments and not disclosing conflict of interest in several projects.

According to the World Bank, EY Kenya did not reveal a conflict of interest during the selection and implementation of four contracts under the SCORE and PFM II projects, as well as the involvement of an agent in these contracts.

Additionally, during the execution of one contract, EY Kenya arranged for allowances to be paid to project officials. This action is considered fraudulent and corrupt under the WBG Consultant Guidelines.

The debarment renders EY Kenya and its controlled affiliates ineligible to participate in World Bank Group (WBG) projects and operations for two and a half years.

This debarment is part of a settlement agreement in which the company admits to engaging in sanctionable practices and agrees to adhere to specified integrity compliance conditions for release from debarment.

EY Kenya must develop and implement an integrity compliance program based on the principles in the WBG Integrity Compliance Guidelines. The company also commits to ongoing cooperation with the WBG Integrity Vice Presidency.

The settlement agreement provides for a reduced debarment period due to the company’s admission of misconduct, cooperation, existing integrity compliance program, and voluntary remedial actions, including disciplining involved staff and refraining from bidding on WBG-financed contracts during negotiations.

The debarment of EY Kenya is eligible for cross-debarment by other multilateral development banks under the April 9, 2010 Agreement for Mutual Enforcement of Debarment Decisions.

Other Kenyan companies debarred by the World Bank include Techno Brain Kenya, which faced a 28-month debarment in 2020. Techno Brain Kenya and Techno Brain UAE engaged in manipulating confidential bidding documents to influence contract awards in their favor. Techno Brain Kenya was awarded the contract despite not meeting tender requirements, necessitating a significant reduction in the work provided under the contract.

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