The World Bank Group (WBG) announced the 30-month debarment of Kenya-based Ernst & Young LLP (EY Kenya), which provides services including assurance, tax, consulting, advisory, and information technology. The debarment is linked to sanctionable practices within the Somali Core Economic Institutions and Opportunities Program (SCORE) and the Second Public Financial Management Capacity Strengthening Project (PFM II) in Somalia.
SCORE aimed to enhance the environment for private and financial sector development and stimulate private investment and job creation. PFM II sought to establish and strengthen systems of domestic revenue mobilization, expenditure control, and accountability in Somalia's Federal Government, Puntland State, and Somaliland State. According to case details, EY Kenya failed to disclose a conflict of interest during the selection and implementation of four contracts under SCORE and PFM II projects. Additionally, an agent was involved in these contracts without disclosure. During one contract's execution, EY Kenya provided allowances for project officials. This conduct is considered fraudulent and corrupt under WBG Consultant Guidelines.
The debarment renders EY Kenya and its controlled affiliates ineligible for participation in WBG-financed projects. It is part of a settlement agreement where the company admits culpability for sanctionable practices and agrees to meet specific integrity compliance conditions as a prerequisite for release from debarment. These conditions include developing an integrity compliance program based on WBG Integrity Compliance Guidelines principles. The company also commits to ongoing cooperation with the WBG Integrity Vice Presidency.
The settlement agreement allows for a reduced debarment period due to the company's admission of misconduct, cooperation aspects of its existing integrity compliance program, voluntary remedial actions—including disciplinary measures against involved staff—and voluntary restraint from bidding on WBG-financed contracts during negotiations.
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.