The World Bank has banned PricewaterhouseCoopers (PwC) firms in Kenya, Rwanda, and Mauritius from participating in bank-funded projects for 21 months after they were found guilty of collusion and fraudulent practices.
In a statement issued on Wednesday, March 18, the World Bank accused PwC Associates in Mauritius, PwC Kenya, and PwC Rwanda of improperly obtaining confidential procurement information from project officials in 2019 to influence the awarding of contracts.Â
The contracts were part of the Eastern Africa Power Integration Program, specifically the Ethiopian Electricity Highway Project, which was designed to increase electricity supply in Kenya and generate revenue for Ethiopia through the export of power.
The investigation revealed that the PwC firms misrepresented the availability, qualifications, and employment status of key experts and failed to fully disclose all subcontractors during the selection and execution of the contracts. This conduct was considered collusive and fraudulent under World Bank guidelines.
“The debarment makes PwC Associates, PwC Kenya, PwC Rwanda and any affiliates they control ineligible to participate in Bank Group-financed projects and operations,” the statement read in part.Â
The decision follows a settlement agreement in which the three firms admitted to wrongdoing.
The World Bank said the companies’ cooperation, internal investigation, staff training, and steps to strengthen their compliance programs contributed to a reduced debarment period.Â
The firms also voluntarily stopped bidding for Bank-funded projects while the settlement was negotiated.
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As part of the agreement, the companies must implement a robust integrity compliance program based on World Bank guidelines before they can resume participation in Bank projects.Â
PricewaterhouseCoopers Africa Limited, which oversees PwC network firms in Africa, was not sanctioned but signed the agreement to ensure oversight of its member firms.
The World Bank emphasized that the debarment is intended to reinforce integrity and accountability in its projects, ensuring that all consultants adhere to ethical and professional standards.
