SOMALIA PROJECTS UNDER PROBE AS WORLD BANK DEBARS AUDITORS ERNST & YOUNG LLP, KENYA FOR CORRUPTION FACILITATION

After numerous corruption, nepotism, and education and experience misrepresentation related complaints of World Bank Somalia projects, the World Bank’s Integrity Vice Presidency finally goes after auditors Ernst & Young Kenya office responsible for audits of World Bank Somalia projects.

In a Press Release issued today, the World Bank Group (WBG) debars Kenya-based Ernst & Young LLP (EY Kenya) for a period of 30-months. Ernst & Young provides various financial and technology services, including assurance, tax, consulting, advisory and information technology. “The debarment is in connection with sanctionable practices as part of the Somali Core Economic Institutions and Opportunities Program (SCORE) and the Second Public Financial Management Capacity Strengthening Project (PFM II) in Somalia,” the World Bank stated on today’s press release.

The World Bank added, “SCORE was designed to improve the enabling environment for private and financial sector development and catalyze private investment and job creation. PFM II aimed to establish and strengthen systems of domestic revenue mobilization, expenditure control, and accountability in the Federal Government of Somalia, Puntland State of Somalia, and Somaliland State.”

As to the failings of Ernst and Young and their knowledge and facilitation of the corrupt practices of Somalia officials, the World Bank stated that “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.”

It added, “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 WBG Consultant Guidelines.”

To find more about this heightened World Bank alert on the pervasive and persistent corruption at Villa Somalia, and in particular at Somalia’s Ministry of Finance and the Central Bank of Somalia, we reached out to renown corruption fighter MP Dr. Abdillahi Hashi Abib, and we asked him what this all means to Somalia and to the Somali people.

MP Abib responded, “The World Bank’s action against Ernst and Young Kenya for their external audit on the SCORES Project, financed by the World Bank, sends a clear message to all external auditors hired by the World Bank: thorough and professional audits are mandatory, or you will be held accountable under the rule of law and risk losing the opportunity to do business with the World Bank.”

MP Abib added that he wholeheartedly welcomes “the bold decision made by the World Bank’s Integrity Vice Presidency.”

The World Bank Integrity Vice Presidency (INT) is an independent unit within the World Bank that investigates and pursues sanctions related to allegations of fraud and corruption in World Bank-financed projects.

MP Abib has recently in his fight against the rampant corruption at Villa Somalia met INT officers in Washington DC, and in today’s debarment of EY Kenya tells Daljir that in his meetings “with officials at the Integrity Vice Presidency (INT) of the World Bank, they assured me that they will ensure that funds designated for the Somali people will not be misappropriated. This demonstrates the team’s serious commitment to the rule of law and accountability for every dollar donated to Somalia.”

MP Abib in his remarks to Daljir concluded, “It is a proud day for Somalia as a country and for the Somali people. I advise all officials working on World Bank projects in Somalia to cooperate and support the INT World Bank in carrying out their due diligence work. It is time to celebrate finally seeing the rule of law, accountability, and transparency taking root in Somalia.”

The World Bank’s INT is now reported to be investigating the following World Bank financed projects in Somalia: RCRF Phase III IDA WB, Water For Argo Postral IDA, SWRR, IDA, SURP II IBRD, Somali Sustainable Fisheries IDA, Somali Education Human Capital Rajo Kaab IDA, New Damal Cafimaad IDA AC, IDA WA FGS D A, IDA Somali Integrated Statistics, IDA SNLRP, IDA MOEWRSESRP, IDA Food System Resilience BIBRD Phase II FMS, IBRD SEP, Human Capital IDA, Ground Water For Resilience IDA, SCALLED-UP IDA, FGS Horn Of Africa Internship IDA, DRIVE PROJECT IDA, Damal Caafimaad IDA, EARDIP IDA, IDA Somali Education Human Capital, IDA Somali Crisis Recovery Project, IDA Education for Human Dev, IBRD Somali Urban Resilience II, IDA Somalia Electricity Sector recovery project 1490, IDA Somali Urban Resilience II, Scaled Up Project IDA, SWRR Project IDA, and IDA Water for Agro Pastoral.

As for other major corruptions currently under investigation, the Central Bank of Somalia is on the crosshairs of the World Bank’s Integrity Vice Presidency (INT). Eshak Adam Harunani of Deloitte Kenya and Tanzania with headquarters in Nairobi is responsible for the audits of Somalia projects. Eshak’s predecessor David Nchimbi, who has allegedly developed close relations with the Governor of the Central Bank and key individuals at Villa Somalia has been terminated by Deloitte at the request of the World Bank after an oversight investigation by MP Dr. Abdillahi Hashi Abib into the external auditors of the Central Bank of Somalia in July 2023. Mr. David Nchimbi served as Deloitte East Africa FSI Leader and Country Managing Partner.

Contributed to by Daljir staff members in Washington DC, Nairobi, Garoowe and Mogadishu.