The World Bank Group has announced a 21-month debarment with conditional release of three PricewaterhouseCoopers entities over collusive and fraudulent practices linked to a regional power project in Ethiopia.
The firms affected are Mauritius-based PricewaterhouseCoopers Associates Africa Ltd. (PwC Associates), PricewaterhouseCoopers Limited, Kenya (PwC Kenya), and PricewaterhouseCoopers Rwanda Limited (PwC Rwanda).
The project was designed to increase the supply of electricity in Kenya at a lower cost, while enabling Ethiopia to earn revenue through power exports.
However, according to the statement by World Bank Group, the firms obtained confidential procurement information from project officials in order to improperly influence the award of a consultancy contract in 2019.
The contract was linked to the implementation of International Financial Reporting Standards for the Ethiopian Electric Power Corporation.
The case findings further show that the firms also attempted to influence the award of another contract involving fixed asset inventory and revaluation for the Ethiopian Electric Utility.
During the process, PricewaterhouseCoopers Associates Africa Ltd. was found to have misrepresented the availability, qualifications and employment status of key experts. It also failed to fully disclose all subconsultants involved in the assignment.
The World Bank Group classified this conduct as collusive and fraudulent under its consultant guidelines.
As a result of the debarment, the three firms, along with any affiliates they control, are now ineligible to participate in projects financed by the World Bank Group for the duration of the sanction. The decision forms part of a settlement agreement in which the companies admitted responsibility for the misconduct.
The World Bank Group said the debarment period was reduced due to the firms’ cooperation during the investigation and the steps they took to address the issues.
These measures included conducting an internal investigation, taking action against responsible individuals, ending business relationships with implicated subconsultants, and providing staff training.
The firms also voluntarily refrained from bidding for World Bank-funded contracts during the settlement negotiations.
As part of the agreement, the companies are required to strengthen and implement integrity compliance programmes in line with World Bank Group guidelines before they can be released from debarment.
PricewaterhouseCoopers Africa Limited, which oversees PwC network firms on the continent, signed the agreement as a non-sanctioned party due to its compliance oversight role.
The firms have also committed to continued cooperation with the World Bank Group’s Integrity Vice Presidency.
The debarment may extend beyond the World Bank Group, as it qualifies for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions signed in April 2010.
