The World Bank Group debarred three PricewaterhouseCoopers (PwC) entities in Africa for 21 months over collusive and fraudulent practices linked to an electricity project in Ethiopia, the lender said.
The firms affected are PwC Africa Ltd. based in Mauritius, PwC Limited Kenya, and PwC Rwanda Limited. The debarment bars the companies and any affiliates from participating in World Bank-financed projects during the period and qualifies for cross-debarment by other multilateral development banks.
The sanctions relate to the Eastern Electricity Highway Project, part of the first phase of the Eastern Africa Power Integration Program. The initiative aimed to boost electricity supply in Kenya, reduce costs, and generate export revenue for Ethiopia through power sales.
According to the World Bank, the PwC entities obtained confidential procurement information in 2019 to improperly influence the award of a consultancy contract involving the implementation of International Financial Reporting Standards for the Ethiopian Electric Power Corporation. They also attempted to sway the award of a Fixed Asset Inventory and Revaluation contract for Ethiopian Electric Utility in favor of PwC associates.
During the contract selection and execution, PwC associates were found to have misrepresented the qualifications and employment status of key experts and failed to fully disclose all subconsultants involved. The Bank classified these actions as collusive and fraudulent under its Consultant Guidelines.
The 21-month debarment period was reduced because the firms admitted wrongdoing, cooperated with investigators, and took remedial steps. These included internal investigations, disciplinary action against responsible staff, severing ties with implicated subconsultants, staff training, and voluntarily refraining from bidding on Bank contracts while settlement talks proceeded.
Before reinstatement, the companies must implement integrity compliance programs aligned with World Bank guidelines. PwC Africa Limited, which oversees affiliate networks across the continent, signed the settlement as a non-sanctioned party because of its compliance oversight role.
“The firms’ cooperation and remedial measures were considered in reducing the debarment term,” the Bank said, noting that all three entities committed to ongoing collaboration with the institution’s Integrity Vice Presidency.
The case highlights persistent challenges in oversight and governance in major infrastructure projects in Africa, and underscores the World Bank’s efforts to maintain integrity in its procurement and contracting processes.
