Webmasters Kenya Limited and its founder and Chief Executive Officer, James Ayugi, have been barred from participating in World Bank-financed projects for a minimum of five years following findings of fraudulent and obstructive practices in projects in Somalia.
The decision places the Kenyan technology company and Ayugi under a sanction that applies across World Bank Group operations.
The World Bank said the ban followed a case involving two projects in Somalia, where the firm was accused of providing inaccurate information about key experts and failing to fully cooperate with an audit.
The Sanctions Board issued its decision on the matter under Sanctions Case No. 790. It imposed debarment with conditional release for a minimum period of five years on both Webmasters Kenya and Ayugi.
After the five-year period, they can only be released from the sanction if they meet conditions set by the Board.The case relates to the Somali Core Economic Institutions and Opportunities Project, known as the Score Project, and the Somalia Capacity Advancement, Livelihoods and Entrepreneurship through Digital Uplift Project.
Webmasters had been involved in contracts connected to the projects. In the Score Project, the firm was part of a group of three companies that submitted a successful proposal for a consulting contract aimed at automating business activities in Somalia.
Ayugi later signed the contract on behalf of the group in November 2018. The contract was valued at $330,000, equivalent to about Sh43.2 million at the time.
The second project focused on expanding access to digital financial and government services, with particular attention to entrepreneurship and employment opportunities.
According to the World Bank’s findings, Webmasters submitted technical and financial proposals that identified key staff members and included certifications stating that the individuals were available to undertake the assignment if the contract was awarded.
However, an investigation by the World Bank Group’s Integrity Vice Presidency found that some of the named experts were not actually available as represented.
The investigation also found that their curricula vitae had been used without authorisation.
The World Bank said the alleged misrepresentation did not end with the submission of the proposals.
The same experts were reportedly presented as available during contract negotiations and were later included in the contract.
The Sanctions Board noted that the respondents did not specifically address this part of the allegation but broadly acknowledged that some statements made during the selection process were inaccurate.
The Board also found that the company failed to provide most of the documents requested during an audit by the Integrity Vice Presidency.
The failure to meaningfully comply with documentary requests was treated as an obstructive practice because it affected the Bank’s ability to carry out its inspection and audit functions.
The sanctions mean Ayugi cannot be awarded or benefit from a World Bank-financed contract during the minimum five-year period.
He is also barred from being nominated as a subcontractor, consultant, manufacturer, supplier or service provider for an otherwise eligible company seeking to participate in World Bank-financed projects.
The restrictions also apply to proceeds from World Bank loans and other forms of participation in projects financed by the institution.
The World Bank further stated that the sanctions would extend to affiliates under the direct or indirect control of either Webmasters Kenya or Ayugi.
The decision also has implications beyond the World Bank. The institution said it would notify other multilateral development banks that are part of the Cross-Debarment Agreement.
Those institutions may decide whether to enforce the declaration of ineligibility under their own rules.
The sanction comes as Webmasters Kenya has also been involved in major technology work in Kenya.
The company secured a three-year support and maintenance contract for the eCitizen platform starting in 2023.
The World Bank decision is specifically connected to the firm’s conduct in the Somalia projects and does not state that the eCitizen contract was part of the case.
For Webmasters Kenya and Ayugi, the five-year debarment means they will be unable to take part in World Bank-financed opportunities during the minimum period unless the conditions for an earlier release are met.
The decision also places restrictions on their participation through affiliated entities or other eligible firms.
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