Sanctions imposed by the World Bank Group on three African affiliates of PricewaterhouseCoopers (PwC) could stretch well beyond a single institution, raising the prospect of a broader global exclusion.
The three firms, PricewaterhouseCoopers Associates Africa Ltd, PricewaterhouseCoopers Limited Kenya, and PricewaterhouseCoopers Rwanda Limited, were handed a 21-month debarment, subject to conditions, over allegations of collusion and fraud tied to a regional power project in Ethiopia.
Under the 2010 Agreement for Mutual Enforcement of Debarment Decisions, penalties issued by one multilateral development bank may be adopted by others, potentially locking the firms out of a wider range of donor-funded projects worldwide.
The case centres on irregularities linked to the Eastern Electricity Highway Project, part of the Eastern Africa Power Integration Program aimed at strengthening electricity supply in Kenya while enabling Ethiopia to generate revenue through power exports.
Investigators found that in 2019, the firms accessed confidential procurement information from project officials to influence the award of a consultancy contract involving International Financial Reporting Standards implementation at Ethiopian Electric Power Corporation.
They were also cited for attempting to sway the awarding of a fixed asset inventory and revaluation contract for Ethiopian Electric Utility. Additionally, one affiliate misrepresented the availability and qualifications of key personnel and failed to fully disclose subcontracting arrangements.
According to the World Bank, the conduct amounted to collusive and fraudulent practices under its Consultant Guidelines.
Also Read: M-Pesa Enters Ethiopia’s Tax System with Amhara Deal
As a result, the firms, along with entities under their control, are barred from participating in World Bank-funded projects for the duration of the sanction. The cross-debarment framework could extend this restriction across other global development finance institutions.
The sanctions followed a negotiated settlement, with the firms admitting to the misconduct. The reduced penalty reflects their cooperation during investigations, disciplinary action taken internally, and efforts to strengthen compliance frameworks.
