Three African branches of PricewaterhouseCoopers (PwC) have been banned for 21 months by the World Bank due to misconduct related to a major cross-border electricity project linking Ethiopia and Kenya.
The World Bank Group imposed the 21-month debarment, with provisions for early reinstatement, on PwC Associates Africa Ltd. based in Mauritius, PwC Kenya, and PwC Rwanda for their role in the Eastern Electricity Highway Project.
This project forms part of a larger regional initiative aimed at enhancing power integration in East Africa. It is intended to allow Ethiopia to export surplus electricity to Kenya while reducing energy costs across the region.
PwC has faced regulatory scrutiny globally, including fines, reprimands, and temporary suspensions, making this recent African sanction consistent with the firm’s historical disciplinary record.
According to the World Bank, during the selection and execution of the Fixed Asset Inventory and Revaluation for the Ethiopian Electric Utility (EEU FAIR Contract), PwC misrepresented the availability, qualifications, and employment status of key personnel and failed to fully disclose all subconsultants involved.
“The debarment renders PwC Associates, PwC Kenya, PwC Rwanda, and any affiliates they control ineligible to participate in Bank-financed projects and operations. This action is part of a settlement in which the three companies accepted responsibility for sanctionable practices,” the report stated.
Concerns over governance for regional energy projects have also arisen due to these sanctions. One of the PwC entities was found to have submitted misleading information regarding the expertise and availability of critical staff and omitted details about subcontracting arrangements, violating the Bank’s integrity standards.
As part of the settlement, the firms admitted to their misconduct and agreed to take corrective steps, including internal disciplinary measures, reforms to compliance processes, staff training, and full cooperation with ongoing oversight. The shortened duration of the ban reflects these remedial efforts.
The sanctions could have wide-ranging implications for the region. Ethiopia’s ambition to become a regional electricity hub may face heightened scrutiny from investors and development partners, particularly regarding procurement transparency and governance. Delays in project execution could affect expected export revenues.
Kenya, as the recipient of the electricity, may experience challenges in stabilizing and lowering power costs if the project faces delays due to increased controls or procurement reviews.
Meanwhile, Rwanda and Mauritius, home to the sanctioned firms, could see reputational effects on their professional services sectors, particularly in transactions linked to international development financing.
The World Bank noted that the sanctions could extend beyond its own projects through cross-debarment agreements with other multilateral institutions, potentially limiting the firms’ access to publicly financed contracts globally.
Reinstatement remains possible, however, if the companies comply with the agreed conditions and continue cooperating with the Bank’s integrity oversight unit.