World Bank Debars PwC Firms Over Ethiopia Power Project Fraud

by Ahmed Ibrahim World Editor

WASHINGTON—The World Bank Group today announced the debarment of three PricewaterhouseCoopers (PwC) affiliates – PricewaterhouseCoopers Associates Africa Ltd. (Mauritius), PricewaterhouseCoopers Limited (Kenya), and PricewaterhouseCoopers Rwanda Limited – for a period of 21 months. The debarment, announced on March 18, 2026, stems from collusive and fraudulent practices connected to the Eastern Electricity Highway Project, a key component of the First Phase of the Eastern Africa Power Integration Program in Ethiopia. This action underscores the World Bank’s commitment to maintaining integrity in projects designed to expand access to reliable and affordable electricity across the region.

The Eastern Electricity Highway Project, as detailed on the World Bank’s project page, aimed to increase electricity supply in Kenya and generate revenue for Ethiopia through the export of power. The investigation revealed that PwC Associates, PwC Kenya, and PwC Rwanda improperly obtained confidential procurement information in 2019, seeking to influence the awarding of consultancy contracts for the Ethiopian Electric Power Corporation. Specifically, they targeted a contract for the implementation of International Financial Reporting Standards. The firms likewise attempted to sway the selection process for a Fixed Asset Inventory and Revaluation contract for the Ethiopian Electric Utility (EEU FAIR Contract) towards PwC Associates.

Details of the Misconduct

According to the World Bank’s findings, the misconduct extended beyond simply seeking an unfair advantage in the bidding process. During the selection and execution of the EEU FAIR Contract, PwC Associates misrepresented the qualifications, availability, and employment status of key personnel. They also failed to fully disclose all subconsultants involved in the project. These actions collectively constitute what the Bank Group defines as collusive and fraudulent practices, violating the Bank Group Consultant Guidelines.

The debarment prohibits PwC Associates, PwC Kenya, PwC Rwanda, and any entities they control from participating in any future projects financed by the World Bank Group. This includes bidding on contracts, receiving funding, or otherwise benefiting from Bank Group operations. The decision is the result of a settlement agreement where the three companies admitted to their culpability in the sanctionable practices.

Mitigating Factors and Compliance Measures

While the standard debarment period is longer, the World Bank agreed to a reduced timeframe of 21 months due to the companies’ proactive steps taken to address the issues. These steps included a full admission of misconduct, cooperation with the investigation, and a strengthening of their existing integrity compliance program. PwC also took voluntary remedial actions, including an internal investigation, disciplinary measures against responsible parties, termination of relationships with implicated subconsultants, and staff training. Notably, PwC voluntarily refrained from bidding on Bank Group-financed contracts during the negotiation of the settlement agreement.

As a condition for the lifting of the debarment, PwC Associates, PwC Kenya, and PwC Rwanda are required to further develop and implement a robust integrity compliance program aligned with the Bank Group Integrity Compliance Guidelines. PricewaterhouseCoopers Africa Limited, the entity overseeing PwC network firms in Africa, signed the agreement as a non-sanctioned party, acknowledging its responsibility for ensuring compliance among its members.

Broader Implications and Cross-Debarment

The World Bank’s decision carries implications beyond its own projects. The debarment qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions, signed in 2010. Which means that other institutions, such as the African Development Bank or the Asian Development Bank, may also choose to exclude PwC Associates, PwC Kenya, and PwC Rwanda from participating in their projects. News of the debarment was first reported by Capital FM Kenya and Business Insider Africa, highlighting the regional impact of the decision. Capital FM and Business Insider Africa both covered the story.

The World Bank has emphasized its commitment to transparency and accountability in all its operations. This debarment serves as a clear signal that fraudulent and collusive practices will not be tolerated, and that firms seeking to participate in Bank-financed projects must adhere to the highest ethical standards. The companies involved have committed to full cooperation with the Bank Group Integrity Vice Presidency throughout the debarment period and beyond.

The next step in this process will be the monitoring of PwC’s implementation of its enhanced compliance program. The World Bank will assess the effectiveness of these measures before considering the full lifting of the debarment in approximately 21 months.

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