The World Bank Group has imposed a 21-month debarment on three African units linked to global professional services network PricewaterhouseCoopers (PwC), citing collusive and fraudulent practices tied to a major regional power project in East Africa.
The sanctioned entities include Mauritius-based PricewaterhouseCoopers Associates Africa Ltd., PwC Kenya, and PwC Rwanda. The debarment, which comes with conditions for eventual reinstatement, renders the firms and any affiliates they control ineligible to participate in projects financed by the World Bank Group during the sanction period.
According to a statement published by the World Bank, the misconduct occurred in connection with the Eastern Electricity Highway Project, a key component of the first phase of the Eastern Africa Power Integration Programme in Ethiopia. The project is designed to strengthen regional power connectivity by increasing electricity supply to Kenya while enabling Ethiopia to generate revenue through electricity exports.
The Bank said its findings showed that the PwC entities improperly obtained confidential procurement information from project officials in 2019 in a bid to influence the award of a consultancy contract. The contract was linked to the implementation of International Financial Reporting Standards for the Ethiopian Electric Power Corporation.
Beyond this, the firms were also found to have attempted to sway the award of another contract involving the Fixed Asset Inventory and Revaluation project for the Ethiopian Electric Utility. Investigations further revealed that during both the selection and execution phases of this contract, PricewaterhouseCoopers Associates Africa Ltd. misrepresented the availability, qualifications and employment status of key personnel, while also failing to fully disclose all subcontracting arrangements.
The World Bank classified these actions as collusive and fraudulent practices under its Consultant Guidelines, forming the basis for the sanctions.
The debarment follows a negotiated settlement agreement in which the three firms admitted responsibility for what the Bank described as “sanctionable practices.” The agreement resulted in a reduced sanction period, taking into account the companies’ cooperation during the investigation, internal disciplinary measures against those involved, and steps taken to strengthen their compliance frameworks.
As part of the remedial actions, the firms conducted internal investigations, terminated relationships with implicated subcontractors, and implemented staff training, while voluntarily refraining from bidding for World Bank-financed contracts during the negotiation process.
The World Bank said that, as a condition for lifting the debarment, the affected firms must develop and implement robust integrity compliance programmes aligned with its Integrity Compliance Guidelines. They are also required to continue cooperating fully with the Bank’s Integrity Vice Presidency.
Although not sanctioned, PricewaterhouseCoopers Africa Limited, which oversees compliance across the network’s African member firms, signed the settlement agreement in a supervisory capacity.
The Bank further noted that the sanctions may trigger cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions signed in April 2010, potentially extending the impact of the penalties beyond World Bank-funded projects.
