eCitizen Founder James Ayugi Breaks Silence Weeks After World Bank Ban on Webmasters

Webmasters Africa CEO James Ayugi has rejected the characterisation of his company’s conduct as fraudulent after the World Bank debarred the firm and its founder from participating in World Bank-financed projects.

The World Bank sanctioned Webmasters Kenya Limited and the CEO for a minimum of five years following findings of fraudulent and obstructive practices linked to a project in Somalia.

The company, which is associated with the development and maintenance of Kenya’s e-Citizen platform, had secured a three-year support and maintenance contract for the platform starting in 2023.

According to a World Bank Sanctions Board, the decision followed a case concerning a World Bank Group-financed project in Somalia after it found the respondents liable for fraudulent and obstructive practices under the World Bank’s guidelines.

As a result, the Board said Webmasters and Ayugi misrepresented the availability of two key experts for a contract under the project and that they impeded the World Bank’s inspection and audit rights by failing to meaningfully comply with documentary requests made during an audit.

Webmasters CEO Admits Personnel Changes Were Not Approved

Speaking during an interview with NTV Kenya, Webmasters CEO James Ayugi acknowledged that changes were made to personnel working on the project without following the required World Bank approval process.

He explained that some of the company’s employees were replaced with individuals he considered to have equivalent expertise as the project expanded through repeated extensions.

“We failed on certain requirements. We realised later that when you are changing some of these resources, there is another process. So this is one of our shortcomings,” Ayugi said.

Also Read: Meet James Ayugi: How a JKUAT Graduate Built the Technology Behind eCitizen.

Ayugi maintained that the changes involved replacing personnel with people who had comparable expertise but acknowledged that Webmasters should have followed the required approval process before making the substitutions.

While acknowledging the procedural shortcomings, the CEO rejected claims that the issue amounted to fraud.

He argued that some people in the industry had sought to portray the matter as fraudulent despite not being directly involved in the project.

“I also understand there are players in the industry who wanted to paint the picture of fraud. They were not on the ground. I was on the ground, so whatever they say doesn’t matter,” Ayugi said.

He maintained that Webmasters delivered the project and remained satisfied with the work completed.

Ayugi Says Appeal Was Unsuccessful

Following the debarment, Ayugi said Webmasters appealed the World Bank’s decision, but the appeal was unsuccessful.

“As I have publicly stated in the past, we agreed because we appealed, and our appeal was not accepted. And for that reason, we say we proceed and move forward. Our business is not affected in any way,” he said.

He further said that their relationship with the World Bank dates back several years, noting that the institution was behind the company’s first project.

According to Ayugi, the experience exposed the company to climate investment and the systems governments require to empower citizens.

Also Read: Why World Bank Has Slapped eCitizen Founder James Ayugi With 5-Year Ban

The company’s work later expanded to major technology projects, including its involvement in Kenya’s e-Citizen platform and the Federal Business Registration project in Somalia.

Despite the fallout, James Ayugi said he hopes Webmasters can maintain a relationship with the World Bank in the future.

He said the company wants to move away from what he described as strained contractual relationships and focus on partnerships and its own ventures.

“We will partner with the World Bank, not the strained contracts. I believe they will come to us. They will understand our impact in less than five years, and we will partner with them because they are still very important to our society,” Ayugi said.

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Photo of World Bank office. PHOTO/WorldBank X