The sanctions apply to PwC Associates Africa Ltd. in Mauritius, PwC Kenya and PwC Rwanda, and render them ineligible to participate in World Bank‑financed projects during the debarment period.
The firms were sanctioned following an investigation into misconduct on the Eastern Electricity Highway Project, part of the First Phase of the Eastern Africa Power Integration Program, which aims to expand electricity trade between Ethiopia and Kenya.
According to the Bank, the three firms obtained confidential procurement information from project officials in 2019 in an attempt to improperly influence the award of a consultancy contract related to the implementation of International Financial Reporting Standards for Ethiopian Electric Power.
They also sought to influence the award of a separate Fixed Asset Inventory and Revaluation contract for the Ethiopian Electric Utility. In addition, PwC Associates was found to have misrepresented the availability and qualifications of key experts and failed to fully disclose its subconsultants, conduct that, the Bank says, constitutes collusive and fraudulent practices under its Consultant Guidelines.
The debarment forms part of a settlement agreement under which the firms admitted to the misconduct. The World Bank said the reduced sanction period reflects their cooperation, internal investigation, disciplinary actions, changes to their integrity compliance systems and voluntary restraint from bidding for Bank‑financed contracts during negotiations.
As a condition for release from debarment, the firms must implement integrity compliance programmes aligned with the Bank’s Integrity Compliance Guidelines. PricewaterhouseCoopers Africa Ltd., the regional coordinating entity for PwC firms across the continent, signed the agreement as a non‑sanctioned party, given its responsibility for oversight of compliance.
The debarment also qualifies for cross‑debarment by other multilateral development banks under the 2010 Agreement for Mutual Enforcement of Debarment Decisions, meaning the firms may face similar restrictions across the international development financing system.
The World Bank emphasised that the companies must continue to fully cooperate with its Integrity Vice Presidency as part of the settlement.
–World Bank/Channel Africa–
