The World Bank has barred PwC Kenya, PwC Rwanda and PwC Associates Africa from taking part in projects funded by the institution for 21 months over misconduct linked to a regional electricity project in Ethiopia.

In a statement issued on March 18th, the World Bank said the sanction follows findings of fraudulent and collusive practices connected to consultancy work under the Eastern Electricity Highway Project, which is part of the Eastern Africa Power Integration Program.

According to the Bank, the firms obtained confidential procurement information and tried to influence how a consultancy contract was awarded. Investigators also found that the companies misrepresented the availability of some experts and did not fully disclose subcontractors involved in the project.

The electricity project was meant to help increase the supply of power to Kenya while allowing Ethiopia to export electricity to its neighbour.

Under the decision, the PwC entities will not be allowed to take part in World Bank financed projects until December 2027.

The World Bank said the penalty follows a settlement agreement in which the firms admitted wrongdoing and agreed to cooperate with investigators. They also committed to strengthen their internal compliance and integrity systems.

The debarment could also trigger similar sanctions from other international development banks under global cross-debarment rules.

PwC Africa, which coordinates the network of PwC firms on the continent, signed the settlement agreement as an oversight entity but was not sanctioned.