Articles

Multilateral Development Bank Sanctions and Reputation Defence

In March, the World Bank imposed a 21-month ban on three PWC firms in Mauritius, Kenya and Rwanda over misconduct on a cross-border Ethiopia–Kenya electricity project. The African Development Bank followed suit. There are 1,381 sanctioned individuals and businesses in the World Bank sanctioned list alone, banned for fraud, corruption, collusion, coercion, or obstruction, or a mix of offences. Five multilateral development banks have similar lists: the World Bank Group, the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, and the Inter-American Development Bank. Under the 2010 Agreement for Mutual Enforcement of Debarment Decisions, a debarment by one for more than a year is recognised and enforced by the other four. In other words, fall foul of one, and you fall foul of them all.For a multi-national firm like PWC, local entities in the relevant states are usually punished rather than the entire worldwide group, although they...

May 14, 2026Read more...