World Bank Bans PwC Firm in Kenya Over Fraud

World Bank Bans PwC Firm in Kenya Over Fraud

Waziri Mayai Wa Maradhi

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PricewaterhouseCoopers (PwC) firms in Kenya, Rwanda, and Mauritius were found guilty of collussion and fraudulent conduct, and the World Bank banned them from taking part in bank-funded projects for 21 months.

The World Bank accused PwC Associates in Mauritius, PwC Kenya, and PwC Rwanda in a statement released on Wednesday, March 18, of inappropriately acquiring private procurement information from project authorities in order to sway contract awards in 2019.

The contracts were part of the Eastern Africa Power Integration Program, specifically the Ethiopian Electricity Highway Project, which was designed to increase electricity supply in Kenya and generate revenue for Ethiopia through the export of power.

The investigation revealed that the PwC firms misrepresented the availability, qualifications, and employment status of key experts and failed to fully disclose all subcontractors during the selection and execution of the contracts. This conduct was considered collusive and fraudulent under World Bank guidelines.

The ruling comes after the three companies acknowledged their wrongdoing in a settlement deal.

According to the World Bank, a shorter debarment time was a result of the companies' cooperation, internal inquiry, employee training, and efforts to improve their compliance programs. The firms also voluntarily stopped bidding for Bank-funded projects while the settlement was negotiated.

Before continuing to participate in Bank projects, the enterprises are required by the agreement to have a strong integrity compliance program based on World Bank criteria.

Although it signed the agreement to guarantee control of its member businesses, PricewaterhouseCoopers Africa Limited, which manages PwC network firms in Africa, was not sanctioned.

In order to ensure that all consultants follow ethical and professional standards, the World Bank stressed that the debarment is meant to strengthen integrity and accountability in its initiatives.
 
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