The World Bank Group has announced a 21-month ban on several PricewaterhouseCoopers (PwC) firms in Kenya and Rwanda over fraud and collusion linked to a major regional electricity project.
In a statement released on March 18, the bank said the sanctions affect PricewaterhouseCoopers Limited, PwC Rwanda, and a Mauritius-based affiliate, following misconduct in the Eastern Electricity Highway Project under the Eastern Africa Power Integration Program in Ethiopia.
According to the World Bank, the project was designed to boost electricity supply in Kenya while enabling Ethiopia to generate revenue through power exports. However, investigations revealed that the firms engaged in collusive and fraudulent practices during the procurement process.
The findings indicate that in 2019, the firms accessed confidential bidding information and used it to improperly influence the awarding of consultancy contracts. These contracts were linked to financial reporting and asset valuation services for Ethiopian power agencies.
The bank also noted that the firms misrepresented critical details during contract execution, including the qualifications and availability of key experts, as well as failing to fully disclose subcontractors involved in the project.
As a result, the affected firms and their controlled affiliates have been barred from participating in World Bank-financed projects for 21 months. The sanction is part of a settlement agreement in which the companies admitted wrongdoing.
The World Bank stated that the debarment period was reduced due to the firms’ cooperation, including internal investigations, disciplinary action against responsible individuals, staff training, and voluntary restraint from bidding during the investigation period.
To regain eligibility, the firms must strengthen and implement integrity compliance programs in line with World Bank standards.
The bank also clarified that PricewaterhouseCoopers Africa Limited signed the agreement in a non-sanctioned capacity due to its oversight role over regional member firms.
This development comes weeks after the World Bank dismissed a viral statement circulating online regarding the NYOTA programme, terming it fake and urging the public to rely on official communication channels.
Tags
News