The World Bank Group has announced a 21-month debarment, with conditional release, of PricewaterhouseCoopers Associates Africa Ltd., PricewaterhouseCoopers Limited, Kenya, and PricewaterhouseCoopers Rwanda Limited over collusive and fraudulent practices linked to a regional electricity project in East Africa.
The sanctions stem from the firms’ involvement in the Eastern Electricity Highway Project, part of the first phase of the Eastern Africa Power Integration Program in Ethiopia. The initiative was designed to increase electricity supply volumes in Kenya while enabling Ethiopia to generate revenue through power exports.
Fraudulent Practices
According to the World Bank, the PwC entities improperly obtained confidential procurement information from project officials in 2019 to influence the award of consultancy contracts tied to financial reporting standards implementation for the Ethiopian Electric Power Corporation. Investigators also found attempts to influence a separate contract involving fixed asset inventory and revaluation for the Ethiopian Electric Utility.
The Bank further stated that PricewaterhouseCoopers Associates Africa Ltd. misrepresented the availability and qualifications of key experts and failed to fully disclose subcontracting arrangements during the procurement and execution phases. These actions were deemed violations of the institution’s consultant guidelines governing integrity and fair competition.
Under the terms of the settlement, the three PwC entities and their controlled affiliates are barred from participating in World Bank-financed projects for the duration of the debarment. The agreement also includes an admission of culpability by the firms.
However, the World Bank noted that the debarment period was reduced in recognition of the companies’ cooperation, internal investigations, disciplinary actions against responsible personnel, and commitments to compliance reform. These include strengthening integrity frameworks, conducting staff training, halting engagements with implicated consultants, and temporarily refraining from bidding on Bank-funded contracts during settlement negotiations.
As a condition for eventual release from debarment, the firms are required to implement enhanced compliance systems aligned with the World Bank’s integrity standards and continue full cooperation with its Integrity Vice Presidency.
