The World Bank Group has debarred three PricewaterhouseCoopers (PwC) entities in Africa for 21 months over their involvement in collusive and fraudulent practices linked to a major regional energy project in East Africa.
The sanctioned firms are Mauritius-based PricewaterhouseCoopers Associates Africa Ltd. (PwC Associates), PricewaterhouseCoopers Limited, Kenya (PwC Kenya), and PricewaterhouseCoopers Rwanda Limited (PwC Rwanda).
The debarment, announced by the Bank Group, renders the firms, and any affiliates they control, ineligible to participate in World Bank-financed projects and operations during the sanction period.
The action stems from misconduct tied to the Eastern Electricity Highway Project under the First Phase of the Eastern Africa Power Integration Program in Ethiopia estimated at US$1.26 billion.
The project was designed to boost electricity supply in Kenya by lowering costs while enabling Ethiopia to generate revenue through power exports.
According to the World Bank’s findings, the three PwC entities improperly accessed confidential procurement information from project officials in 2019.
This information was used to influence the award of a consultancy contract related to the implementation of International Financial Reporting Standards (IFRS) for the Ethiopian Electric Power Corporation.
The firms were also found to have attempted to influence the award of another contract, the Fixed Asset Inventory and Revaluation for the Ethiopian Electric Utility (EEU FAIR Contract), to PwC Associates.
During both the selection and execution phases of the EEU FAIR contract, PwC Associates misrepresented key details, including the availability, qualifications, and employment status of proposed experts.
Additionally, the firm failed to fully disclose all subconsultants involved in the project.
The World Bank classified these actions as collusive and fraudulent practices under its Consultant Guidelines.
The debarment forms part of a negotiated settlement agreement in which PwC Associates, PwC Kenya, and PwC Rwanda admitted culpability.
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These include the firms’ cooperation during the investigation, their admission of wrongdoing, and steps taken to strengthen internal compliance systems.
The companies also undertook a series of remedial actions, including conducting an internal investigation, taking disciplinary action against responsible staff, terminating relationships with implicated subconsultants, implementing staff training programs, and voluntarily refraining from bidding on World Bank-financed contracts during the negotiation process.
As a condition for reinstatement after the debarment period, the firms must develop and implement integrity compliance programs aligned with the World Bank Group’s Integrity Compliance Guidelines.
PricewaterhouseCoopers Africa Limited, the coordinating entity for PwC network firms across the continent, also signed the settlement agreement as a non-sanctioned party.
The Bank noted that this entity plays an oversight role in ensuring compliance among its member firms, including those sanctioned.
The firms have further committed to continued cooperation with the World Bank’s Integrity Vice Presidency.
Importantly, the debarment qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions signed on April 9, 2010.
This means the sanctions could extend beyond the World Bank to other international financial institutions, amplifying the impact on the firms’ operations in development-funded projects globally.
The case underscores the World Bank’s continued push to enforce accountability and integrity in procurement processes tied to its projects, particularly in large-scale infrastructure initiatives critical to regional economic integration.
