World Bank debars PwC Africa units over Ethiopia power project fraud

The World Bank Group has announced a 21-month debarment, with conditional release, of three PricewaterhouseCoopers (PwC) Africa units over collusive and fraudulent practices linked to a major regional electricity project in East Africa.

The sanctioned firms, PricewaterhouseCoopers Associates Africa Ltd., PricewaterhouseCoopers Limited Kenya, and PricewaterhouseCoopers Rwanda Limited, were found to have engaged in misconduct during the implementation of the Eastern Electricity Highway Project under the First Phase of the Eastern Africa Power Integration Program in Ethiopia.

The project aimed to boost electricity supply in Kenya while generating export revenues for Ethiopia through cross-border power trade. However, according to the World Bank, the PwC entities obtained confidential procurement information from project officials in 2019 to improperly influence the award of a consultancy contract tied to financial reporting reforms at Ethiopian Electric Power Corporation.

Investigations further revealed attempts to sway the award of a separate contract for fixed asset inventory and revaluation for the Ethiopian Electric Utility. In addition, PwC Associates was found to have misrepresented the qualifications and availability of key experts and failed to disclose all subcontracting arrangements, violations that fall under collusive and fraudulent practices as defined by the Bank’s procurement guidelines.

Under the terms of the settlement, the firms admitted wrongdoing, a factor that contributed to a reduced debarment period. The agreement also reflects cooperation with investigators and remedial actions, including internal disciplinary measures, compliance program enhancements, and staff training.

The debarment renders the firms and their controlled affiliates ineligible to participate in World Bank-financed projects during the sanction period. It may also trigger wider consequences under the Agreement for Mutual Enforcement of Debarment Decisions, potentially extending the ban across other international financial institutions.

As part of the conditions for reinstatement, the companies are required to strengthen and implement integrity compliance programs aligned with World Bank standards and continue cooperating with the institution’s Integrity Vice Presidency.

The case underscores growing scrutiny of consultancy firms involved in large-scale infrastructure projects, particularly those financed by multilateral lenders, and signals stricter enforcement of transparency and accountability standards in Africa’s energy sector.