The World Bank has sanctioned several African units of PricewaterhouseCoopers (PwC), banning them from participating in its projects over fraud and collusion linked to a major electricity project.
Investigations found that PwC subsidiaries in Kenya, Rwanda, and Mauritius engaged in fraudulent and collusive practices while bidding for consultancy contracts tied to a cross-border electricity project between Kenya and Ethiopia.
According to the World Bank:
- PwC illegally obtained confidential information during the bidding process
- This gave the firm an unfair advantage over competitors
- The misconduct dates back to 2019 consultancy contracts on the project
As a result:
- PwC’s affected African units have been debarred for 21 months
- They are now ineligible to participate in World Bank-funded projects during that period
The sanctions also trigger cross-debarment, meaning other global institutions like the African Development Bank may impose similar restrictions.
The investigation revealed multiple violations:
- Collusion with project officials to access inside information
- Misrepresentation of staff qualifications and availability
- Failure to fully disclose subcontracting arrangements
PwC admitted to the misconduct as part of a settlement agreement, which helped reduce the length of the ban.
The case is significant because it:
- Hits one of the world’s “Big Four” accounting firms
- Involves a major African infrastructure project worth billions
- Raises fresh concerns about transparency in development financing
The electricity project itself was designed to improve power supply and enable energy trade between Kenya and Ethiopia, making the scandal particularly impactful for regional development.
The World Bank has been tightening oversight on fraud and corruption in its projects, and this case sends a strong signal that even global firms are not immune.
For PwC, the fallout goes beyond Africa adding to a series of reputational challenges the firm has faced globally in recent years.
For Africa, it raises a deeper question:
How many critical development projects are being quietly influenced behind the scenes?
