The World Bank has announced a 21-month debarment of PricewaterhouseCoopers (PwC) in Mauritius, Kenya, and Rwanda due to collusive and fraudulent practices related to the Eastern Electricity Highway Project in Ethiopia. This sanction prohibits PwC and its affiliates from participating in any World Bank-financed projects during this period.
The debarment stems from findings that PwC units obtained confidential procurement information from project officials in 2019, which they used to improperly influence contract awards. The Eastern Electricity Highway Project, valued at approximately $1.1 billion, is part of the Eastern Africa Power Integration Program, aimed at enhancing electricity supply in Kenya while generating revenue for Ethiopia through power exports.
The World Bank stated, “This conduct constitutes collusive and fraudulent practices under the Bank Group Consultant Guidelines.” Furthermore, the firms involved admitted culpability and have agreed to undertake remedial actions, including internal investigations and staff training.
In light of the companies’ admission of misconduct, the settlement agreement provides for a reduced period of debarment. The Eastern Africa Power Integration Program seeks to reduce reliance on expensive thermal power plants in Kenya by importing cleaner, cheaper hydroelectric power from Ethiopia.
This debarment may also be enforced by other multilateral development banks under a mutual recognition agreement, potentially impacting PwC’s operations beyond the World Bank’s jurisdiction. Observers are closely monitoring the situation as the implications of this debarment unfold in the region.
