Three African units of PricewaterhouseCoopers, including its Kenya office, have been suspended from World Bank Group-funded projects for 21 months after being found involved in fraud and collusion in a multi-billion shilling regional electricity initiative.
The sanctions target PwC offices in Kenya, Rwanda, and Mauritius over their involvement in the Eastern Electricity Highway Project in Ethiopia, a Sh149.8 billion programme designed to connect Ethiopia’s power grid with Kenya, reduce electricity costs, and allow Ethiopia to earn revenue through power exports.
According to the Bank, the firms gained access to confidential procurement information from project officials to manipulate consultancy contract awards. They also misrepresented the qualifications and availability of key experts listed in their proposals.
The firms affected are PricewaterhouseCoopers Limited in Mauritius, PricewaterhouseCoopers Kenya, and PricewaterhouseCoopers Rwanda Limited. They were competing with several other firms, including South Africa’s Aurecon, BDO Consulting, a joint venture between Levin and Estudios Energeticos from Argentina, Grant Thornton Ethiopia, and Australia’s RHAS.
The World Bank investigation focused on the Eastern Africa Power Integration Programme, a regional initiative aimed at increasing electricity supply in Kenya while generating export revenue for Ethiopia.
The Bank found that the PwC firms improperly influenced a 2019 consultancy contract for implementing International Financial Reporting Standards at the Ethiopian Electric Power Corporation. They also attempted to sway the award of a second contract for Fixed Asset Inventory and Revaluation for the Ethiopian Electric Utility.
“Additionally, during the selection and execution of the EEU FAIR Contract, PwC Associates misrepresented the availability, qualifications and employment status of key experts and failed to fully disclose all sub-consultants,” the Bank said.
“This conduct constitutes collusive and fraudulent practices under the Bank Group Consultant Guidelines.”
As a result, PwC Associates, PwC Kenya, PwC Rwanda, and any affiliates they control are barred from participating in World Bank-financed projects during the suspension period.
The Bank said the firms admitted their misconduct under a settlement agreement, which led to a reduced debarment period due to their cooperation and corrective measures.
These included internal investigations, disciplinary action against responsible staff, ending business with involved sub-consultants, staff training, and voluntarily refraining from bidding on Bank-funded contracts during negotiations.
“The settlement agreement provides for a reduced period of debarment in light of the companies’ admission of misconduct, cooperation, strengthening of aspects of their existing integrity compliance programme and voluntary remedial actions, including an internal investigation, internal action against responsible parties, ceasing business with all involved sub-consultants, staff training and voluntary restraint from bidding for Bank Group-financed contracts during the settlement agreement negotiations,” the Bank said.
To regain eligibility, the firms must implement an integrity compliance programme that meets the Bank’s guidelines.
PricewaterhouseCoopers Africa Limited, which oversees operations across the continent, was included as a non-sanctioned party because of its supervisory role. The firms also pledged to continue cooperating with the Bank’s Integrity Vice Presidency.
The suspension could extend through cross-debarment agreements with other global development lenders, potentially affecting the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, and the Inter-American Development Bank Group.
The case adds to ongoing challenges for PwC globally, as leadership under Mohamed Kande continues managing fallout from prior scandals in key markets, including China and Australia.
