Audit firm Ernst & Young (EY) is facing sanctions in Kenya by the World Bank Group over alleged corruption. This will see EY debarred from World Bank projects and programmes for the next two-and-a-half years.

The World Bank said it debarred EY for 30 months following investigation, which revealed that the audit firm was found guilty of conflict of interest and corruption in two of World Bank’s programmes in Somalia.

The World Bank Group has announced the 30-month debarment of Kenya-based Ernst & Young LLP (EY Kenya), which provides various services including assurance, tax, consulting, advisory and information technology.

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,” reads part of the statement.

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In addition, the World Bank said, 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 WBG Consultant Guidelines.

The debarment makes EY Kenya and any affiliates it controls ineligible to participate in WBG-financed projects and operations.

According to the bank, this 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.

"It includes developing and implementing an integrity compliance programme that reflects the principles set out in the WBG Integrity Compliance Guidelines. The company also commits to continue to fully cooperate with the WBG Integrity Vice Presidency,” reads the statement in part.