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.
Audit firm, Ernst and Young, Kenya (EY Kenya) faces blight on its reputation after the World Bank (WB) debarred it from its projects and programmes for two years, citing 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.
EY Kenya was found in breach of the bank’s code of conduct relating to the Somali Core Economic Institutions and Opportunities Program (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 WB published on June 26.
“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 sanctions dent EY Kenya’s reputation because potential clients or even partners may keep off for fear of association with a tainted firm. This can lead to a loss of business opportunities and a decrease in competitive edge in the market.
EY Kenya is the latest Kenyan firm to have been blacklisted by the WB on any projects being financed by the Washington-based institution.
“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. “
The World Bank said EY Kenya is expected to develop and implement an integrity compliance programme that reflects the principles set out in the WB Integrity Compliance Guidelines.
The company has also committed to continue to fully cooperate with the WB Integrity Vice Presidency if it is to get out of the blacklist before the end of the 30 months.
Source link : https://www.theeastafrican.co.ke/tea/business/ey-kenya-reputation-at-risk-after-world-bank-sanction-4676426?view=htmlamp
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Publish date : 2024-07-02 07:30:45
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