Casablanca – The World Bank Group has debarred three African PricewaterhouseCoopers (PwC) entities for 21 months after finding they engaged in collusive and fraudulent practices linked to a major Ethiopia-Kenya electricity project, according to a statement released on March 18.
The firms affected are Mauritius-based PwC Africa Ltd., PwC Limited Kenya, and PwC Rwanda Limited. Under the sanction, the accounting three firms and any affiliates they control are barred from participating in World Bank-financed projects and operations during the debarment period.
The sanction also qualifies for cross-debarment by other multilateral development banks under the 2010 Agreement for Mutual Enforcement of Debarment Decisions.
The case relates to the Eastern Electricity Highway Project, part of the first phase of the Eastern Africa Power Integration Program in Ethiopia. The project aimed to increase electricity supply volumes in Kenya, lower power costs, and generate export revenue for Ethiopia through electricity sales to Kenya.
According to the World Bank, the three PwC firms obtained confidential procurement information from project officials in 2019 to improperly influence the award of a consultancy services contract involving the implementation of International Financial Reporting Standards for Ethiopian Electric Power Corporation.
They also tried to sway the award of a separate Fixed Asset Inventory and Revaluation contract for Ethiopian Electric Utility in favor of PwC Associates.
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The Bank said the misconduct continued during the selection and execution of the Ethiopian Electric Utility fixed asset contract. PwC Associates was found to have misrepresented the availability, qualifications, and employment status of key experts, while also failing to fully disclose all subconsultants involved in the work. The lender classified those actions as collusive and fraudulent practices under its Consultant Guidelines.
The debarment is part of a settlement agreement in which the three companies admitted culpability. The World Bank said the 21-month term was reduced because of the firms’ cooperation, their admission of wrongdoing, and a series of voluntary remedial measures.
These included an internal investigation, action against responsible parties, ending business ties with all involved subconsultants, staff training, and voluntarily refraining from bidding for Bank-financed contracts while settlement talks were underway.
Before they can be released from debarment, the firms must further develop and implement integrity compliance programs aligned with World Bank guidelines.
PricewaterhouseCoopers Africa Limited, which oversees affiliate network firms across the continent, signed the agreement as a non-sanctioned party because of its compliance oversight role. The firms also committed to continue cooperating with the Bank Group’s Integrity Vice Presidency.
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