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World Bank ban PwC in Kenya, Rwanda and Mauritius for 21 months over procurement fraud

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Simon Kabayohttps://eagle.co.ug
Reporter whose work is detailed

The World Bank Group has announced a 21 month suspension of three PricewaterhouseCoopers affiliated firms in East Africa after investigations uncovered collusive practices and misrepresentation in a major regional energy project.

The affected firms in Kenya, Rwanda and Mauritius were found to have breached procurement rules under the Eastern Africa Power Integration Program, specifically in relation to the Ethiopian Electricity Highway Project. The project is a key component of efforts to strengthen electricity supply in Kenya while enabling Ethiopia to export surplus power across the region.

According to details released by the World Bank on March 18, 2026, the misconduct dates back to 2019 when the firms allegedly accessed confidential bidding information through improper channels. This information was then used to influence the outcome of contract awards, undermining fair competition.

Investigators also established that the firms submitted inaccurate information about the availability and qualifications of key experts proposed for the assignment. In addition, some subcontracting arrangements were not fully disclosed during both the tendering and implementation phases, raising further concerns about transparency and compliance.

The sanctions follow a negotiated settlement in which the firms acknowledged wrongdoing and agreed to corrective measures. During the 21 month period, the firms and any entities under their control will not be eligible to participate in projects financed by the World Bank.

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The institution noted that the penalty reflects both the gravity of the violations and the firms’ level of cooperation during the investigation. It cited remedial actions already undertaken, including strengthening internal controls, enhancing compliance systems and rolling out staff training on ethical standards. The firms had also voluntarily stepped back from bidding on World Bank funded contracts while the matter was under review.

As part of the agreement, the firms are required to implement and maintain a comprehensive integrity compliance programme that meets World Bank standards before they can regain eligibility to participate in future projects.

PwC Africa Limited, which coordinates the network across the continent, was not directly sanctioned but took part in the resolution framework to reinforce oversight and ensure consistent compliance across its member firms.

The World Bank said the action underscores its determination to protect development financing from abuse and to uphold strict standards of accountability in all projects it supports.

The development adds to increasing oversight of large scale infrastructure programmes in East Africa, where financiers are tightening enforcement to safeguard public resources and maintain confidence in cross border investments.

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