By Infora Media
Kampala — The World Bank Group has debarred three African affiliates of PricewaterhouseCoopers (PwC) for 21 months over collusive and fraudulent practices linked to a major regional energy project in East Africa.
The sanctioned entities are Mauritius-based PricewaterhouseCoopers Associates Africa Ltd., PwC Kenya and PwC Rwanda. The debarment renders the firms—and any affiliates they control—ineligible to participate in World Bank-financed projects during the sanction period.
According to the World Bank, the action arises from misconduct connected to the Eastern Electricity Highway Project under the First Phase of the Eastern Africa Power Integration Programme in Ethiopia. The project, estimated at $1.26 billion, is designed to boost electricity supply in Kenya while enabling Ethiopia to generate revenue from cross-border power exports.
Investigations by the Bank’s Integrity Vice Presidency found that in 2019, the PwC entities improperly accessed confidential procurement information from project officials. The information was then used to influence the award of a consultancy contract to implement 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 Utilityto, PwC Associates.
During both the selection and execution of that contract, PwC Associates misrepresented key details, including the availability, qualifications and employment status of proposed experts. The firm also failed to fully disclose all subconsultants involved in the assignment.
The World Bank classified the actions as collusive and fraudulent practices under its Consultant Guidelines.
The sanctions follow a negotiated settlement in which the three firms admitted wrongdoing. The 21-month debarment period reflects a reduction granted by the Bank after considering mitigating factors, including the firms’ cooperation with investigators, admission of culpability and steps taken to strengthen internal compliance systems.
As part of the settlement, the firms undertook remedial measures such as conducting internal investigations, disciplining responsible staff, severing ties with implicated subconsultants and rolling out staff training programmes. They also voluntarily refrained from bidding on World Bank-financed contracts during the negotiation period.
For reinstatement after the debarment, the firms must implement integrity compliance programmes aligned with the World Bank’s guidelines.
Meanwhile, PricewaterhouseCoopers Africa Limited, which oversees the network of PwC firms across the continent, signed the agreement as a non-sanctioned party. The Bank noted that the entity plays a supervisory role in ensuring compliance among member firms.
The debarment is also subject to cross-enforcement by other multilateral development banks under a 2010 agreement on mutual recognition of sanctions. This means the restrictions could extend beyond the World Bank, affecting the firms’ eligibility for projects financed by other international financial institutions.
Analysts say the case highlights the World Bank’s tightening stance on procurement integrity, particularly in large-scale infrastructure projects seen as critical to regional economic integration.
The Eastern Electricity Highway Project remains a key initiative aimed at strengthening power connectivity in East Africa, reducing electricity costs and supporting economic growth across participating countries.