EY Kenya’s standing is in jeopardy following a World Bank punishment

Ernst & Young, Kenya (EY Kenya), an audit firm, has had its image damaged by the World Bank (WB) when it was prevented from participating in projects and programs for two years due to allegations of corruption and conflict of interest.

Following investigations that found EY Kenya guilty of conflict of interest and wrongdoing in two public programs in Somalia, the World Bank announced that it has prohibited the company.

Regarding the Second Public Financial Management Capacity Strengthening Project (PFM II) and the Somali Core Economic Institutions and Opportunities Program (Score), it was discovered that EY Kenya had violated the bank’s code of conduct.

The WB released a statement on June 26 that stated, “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.”

Furthermore, throughout the course of one of the contracts, EY Kenya included a clause requiring project staff to receive allowances. According to the World Bank Consultant Guidelines, this activity qualifies as fraudulent and corrupt practices.

Because potential customers or even partners may avoid EY Kenya due to the fines, the company’s reputation is damaged. This may result in fewer commercial prospects and a diminished ability to compete in the market.

The World Bank, a Washington-based organization, has blacklisted EY Kenya as the most recent Kenyan company for any projects it finances.

It is a component of a settlement deal wherein the business acknowledges responsibility for actions that are prohibited and consents to fulfill integrity compliance standards in order to be released from debarment.

According to the World Bank, EY Kenya must create and carry out an integrity compliance program that adheres to the guidelines provided in the WB Integrity Compliance Guidelines.

In addition, the business has promised to work closely with the WB Integrity Vice Presidency in order to remove itself from the blacklist before the 30-month period is up.