The World Bank Group (WBG) announced a 30-month debarment of Ernst & Young LLP Kenya (EY Kenya), a professional services firm, for failing to disclose a conflict of interest during project implementation in Somalia.

The debarment stems from EY Kenya's involvement in the Somali Core Economic Institutions and Opportunities Program (SCORE) and the Second Public Financial Management Capacity Strengthening Project (PFM II).

SCORE aimed to bolster private sector development in Somalia, while PFM II focused on strengthening financial management systems within the Somali government.

According to the WBG, EY Kenya failed to disclose a conflict of interest during the selection and execution of four contracts under these projects.

Additionally, the firm reportedly involved an undisclosed agent in these contracts.

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During one project, EY Kenya allegedly made provisions for allowances to be paid to project officials.

These actions constitute "fraudulent and corrupt practices" under the WBG's Consultant Guidelines.

The debarment prohibits EY Kenya and its affiliates from participating in any WBG-financed projects for the next 30 months.

This action is part of a settlement agreement where EY Kenya acknowledges its misconduct and agrees to implement specific integrity compliance measures.

These measures include developing a program that reflects the WBG's Integrity Compliance Guidelines and continued cooperation with the WBG's Integrity Vice Presidency.

The settlement agreement acknowledges EY Kenya's cooperation and existing integrity compliance efforts, resulting in a reduced debarment period.

The firm also took voluntary actions, including disciplinary measures against involved staff and refraining from bidding on WBG contracts during negotiations.

The debarment may be extended to other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions.

This agreement, signed in 2010, allows for coordinated debarment actions among signatory institutions.