The World Bank has announced a 21-month debarment of three PricewaterhouseCoopers (PwC) entities with conditional release on PwC Associates Africa Ltd. (Mauritius), PwC Kenya, and PwC Rwanda.
“World Bank Group Debars PricewaterhouseCoopers Associates Africa Ltd., PricewaterhouseCoopers Limited, Kenya, and PricewaterhouseCoopers Rwanda Limited,” the statement read.
The action follows findings of collusive and fraudulent practices in the Eastern Electricity Highway Project, part of the First Phase of the Eastern Africa Power Integration Program in Ethiopia.
PwC Misconduct in Contracts
According to the Bank, PwC Associates, PwC Kenya, and PwC Rwanda obtained confidential procurement information from project officials to improperly influence the award of a consultancy services contract in 2019.
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This contract involved the implementation of International Financial Reporting Standards for the Ethiopian Electric Power Corporation.
The misconduct extended to another contract for Fixed Asset Inventory and Revaluation (EEU FAIR Contract) for the Ethiopian Electric Utility, in which the companies misrepresented the availability, qualifications, and employment status of key experts and failed to fully disclose all subconsultants.
The World Bank classified this conduct as collusive and fraudulent practices under its Consultant Guidelines, which safeguard the integrity of Bank-financed projects.
Implications of the Debarment
The 21-month debarment with conditional release bars PwC Associates, PwC Kenya, PwC Rwanda, and any affiliates they control from participating in World Bank-financed projects and operations.
This action follows a settlement agreement under which the three companies admitted culpability.
“The debarment makes PwC Associates, PwC Kenya, PwC Rwanda, and any affiliates they control ineligible to participate in Bank Group-financed projects and operations. It is part of a settlement agreement under which the three companies admit culpability for sanctionable practices,” added World Bank.
The settlement also considered the firms’ cooperation, internal investigations, staff training, and remedial actions.
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According to the World Bank, the companies voluntarily refrained from bidding on Bank projects during the negotiation of the agreement and committed to developing and implementing an integrity compliance program in line with Bank Group guidelines.
Project Context and Oversight
Eastern Electricity Highway Project aims to increase electricity supply in Kenya while generating export revenues for Ethiopia.
The project is part of broader efforts under the Eastern Africa Power Integration Program to strengthen regional electricity interconnections and trade.
The settlement agreement highlights oversight within the PwC network: PricewaterhouseCoopers Africa Limited, which coordinates African member firms, was not sanctioned, as it provides compliance oversight for PwC Associates, PwC Kenya, and PwC Rwanda.
The Bank emphasized that the companies will still continue to fully cooperate with the Bank Group Integrity Vice Presidency to ensure accountability and compliance in future operations.
