World Bank debars PwC units in Africa over fraud in power project
World Bank debars PwC units in Africa over fraud in power project
The World Bank Group announced a 21-month debarment of three PricewaterhouseCoopers affiliates in Africa over collusive and fraudulent practices linked to a regional electricity project.
The firms affected are PricewaterhouseCoopers Associates Africa Ltd, PricewaterhouseCoopers Limited Kenya, and PricewaterhouseCoopers Rwanda Limited.
According to the World Bank, the misconduct occurred during the Eastern Electricity Highway Project under the Eastern Africa Power Integration Program, which aims to increase electricity supply to Kenya while enabling Ethiopia to export surplus power.
Investigations found that the firms obtained confidential procurement information from project officials in 2019 to improperly influence the award of a consultancy contract involving financial reporting reforms for the Ethiopian Electric Power Corporation.
The companies were also found to have attempted to influence another contract involving fixed asset inventory and revaluation for the Ethiopian Electric Utility.
In addition, PricewaterhouseCoopers Associates Africa Ltd was cited for misrepresenting the availability and qualifications of key experts and failing to fully disclose subcontracting arrangements during the execution of the contract.
The World Bank said the actions constitute collusive and fraudulent practices under its procurement guidelines.
Under the sanctions, the three firms and their controlled affiliates are barred from participating in World Bank-financed projects and operations for 21 months.
The debarment follows a negotiated settlement in which the firms admitted wrongdoing and agreed to remedial measures, including internal investigations, disciplinary action against responsible staff, and enhanced compliance programs.
As part of the agreement, the firms will implement strengthened integrity compliance systems aligned with World Bank standards as a condition for reinstatement.
The settlement also recognizes the companies’ cooperation during investigations and voluntary steps taken, such as suspending business with implicated subcontractors and refraining from bidding for Bank-funded contracts during the probe.
PricewaterhouseCoopers Africa Limited signed the agreement as a non-sanctioned party, reflecting its oversight role over member firms across the continent.The World Bank Group announced a 21-month debarment of three PricewaterhouseCoopers affiliates in Africa over collusive and fraudulent practices linked to a regional electricity project.
The firms affected are PricewaterhouseCoopers Associates Africa Ltd, PricewaterhouseCoopers Limited Kenya, and PricewaterhouseCoopers Rwanda Limited.
According to the World Bank, the misconduct occurred during the Eastern Electricity Highway Project under the Eastern Africa Power Integration Program, which aims to increase electricity supply to Kenya while enabling Ethiopia to export surplus power.
Investigations found that the firms obtained confidential procurement information from project officials in 2019 to improperly influence the award of a consultancy contract involving financial reporting reforms for the Ethiopian Electric Power Corporation.
The companies were also found to have attempted to influence another contract involving fixed asset inventory and revaluation for the Ethiopian Electric Utility.
In addition, PricewaterhouseCoopers Associates Africa Ltd was cited for misrepresenting the availability and qualifications of key experts and failing to fully disclose subcontracting arrangements during the execution of the contract.
The World Bank said the actions constitute collusive and fraudulent practices under its procurement guidelines.
Under the sanctions, the three firms and their controlled affiliates are barred from participating in World Bank-financed projects and operations for 21 months.
The debarment follows a negotiated settlement in which the firms admitted wrongdoing and agreed to remedial measures, including internal investigations, disciplinary action against responsible staff, and enhanced compliance programs.
As part of the agreement, the firms will implement strengthened integrity compliance systems aligned with World Bank standards as a condition for reinstatement.
The settlement also recognizes the companies’ cooperation during investigations and voluntary steps taken, such as suspending business with implicated subcontractors and refraining from bidding for Bank-funded contracts during the probe.
PricewaterhouseCoopers Africa Limited signed the agreement as a non-sanctioned party, reflecting its oversight role over member firms across the continent.
The World Bank further noted that the sanctions may trigger cross-debarment by other multilateral development banks under a 2010 agreement on mutual enforcement of debarment decisions.
The case underscores growing scrutiny of governance and procurement practices in major infrastructure projects across the region.
The World Bank further noted that the sanctions may trigger cross-debarment by other multilateral development banks under a 2010 agreement on mutual enforcement of debarment decisions.
The case underscores growing scrutiny of governance and procurement practices in major infrastructure projects across the region.