In an emerging narrative that intertwines immense financial stakes and allegations of corruption, South African businessman Errol Gregor is spotlighted for his involvement in a US$850 million oil pipeline project in Zimbabwe, under a cloud of suspicion stemming from a bribery scandal in Ghana.
According to an investigative report by “The Sentry”, a US-based organisation focused on uncovering illicit networks, Gregor was embroiled in controversy dating back to 2019 when he was sued after a major bribery scandal rocked Ghana’s oil sector.
The report highlights that Gregor’s departure from Mining Oil and Gas Services (Mogs) was a pivotal moment that led him to shift towards Zimbabwe and its extensive energy prospects.
At the heart of this new venture is a partnership with the National Oil Infrastructure Company (Noic) as they seek to develop Zimbabwe’s second fuel pipeline, a critical infrastructure project poised to transform the country into a regional hub for fuel distribution.
The project proposes a transnational pipeline connecting Mozambique’s Indian Ocean coastline to Zimbabwe, promising significant economic implications for both nations.
The Sentry’s detailed investigation indicates that the proposed infrastructure expansion could yield substantial financial returns.
“If Coven Energy and Noic’s plans sail through, the second pipeline would be a lucrative venture,” the report asserted.
Currently, Noic holds full control of an existing pipeline linking Feruka to Harare, having acquired a 50% stake from Lonmin in 2018. The company’s strategic vision aims to leverage Zimbabwe’s geographical advantages to become a prominent oil supplier in southern Africa.
However, with plans for an additional pipeline being set in motion, background allegations from previous ventures linger. Gregor’s reputation is marred by claims he allegedly sanctioned multimillion-dollar bribes while leading Mogs in its pursuit to secure a lucrative offshore oil contract in Ghana.
Whistleblowers from within Mogs alleged that payments totalling US$18 million were directed to Edwin Obiri, a Ghanaian dealmaker, as well as Kingsley Kwame Awuah-Darko, a politician entwined in the tendering process.
The investigation remains ongoing, with allegations suggesting that Mogs was a victim of a broader scheme involving improper financial transactions devoid of legitimate business rationale.
In response to these allegations, Gregor emphatically denied any wrongdoing, stating: “No one was ever bribed. That never happened. Everything was above board.”
His protestations, however, stand in stark contrast to the findings detailed in “The Sentry” report, which allege that Gregor’s previous business dealings led to a series of contentious lawsuits after his departure from Mogs.
According to online publication “NewsDay”, Obiri defended the actions taken during the tender process, asserting that all dealings between Mogs and Africore Energy were validated by board consensus, thereby circumventing any accusations of unilateral financial misconduct.
“All payments to Mogs were approved by the board and not paid unilaterally by one individual,” Obiri explained, emphasising the rigorous and competitive nature of the tendering process they pursued.
Mogs spokesperson, Alan Fine, denied the company’s involvement in the Zimbabwean pipeline, saying it didn’t give the job to Gregor.
About the enquiries concerning the Ghana transaction, Fine stated that in order to address Obiri’s allegations regarding Mogs’s investment in the GPMS project in Ghana, the Board of Mogs commissioned an investigation by EY in 2019.
According to Fine, the EY investigation showed that Mogs was the victim of a fraudulent scheme, in which Obiri and his company Africore played a key role.
“The investigation established that the scheme resulted in payments being made by Mogs or its subsidiaries to Africore in exchange for little or no value, with no legitimate commercial rationale for these payments. Mogs is committed to bringing the parties found guilty of fraudulent or unethical behaviour to account, to recover value wherever possible, and to protect its stakeholders.
“In response to the findings of the EY investigation, Mogs in 2019 appointed leading South African law firm Bowmans to advise the Board on remedial actions and related legal matters and the Board has taken the following steps:
“1. Reported the matter to the South African Police Service. The criminal investigation is ongoing. 2. Terminated its relationship with its former CEO, Mr Errol Gregor. 3. Pursued recovery of all funds unlawfully paid, misappropriated, or lost due to the scheme, and initiated claims for damages against all parties responsible, including Mr Obiri, Africore and Mogs’ former CEO under whose supervision these events took place,” he explained.
Fine further said his company firmly believed it had acted appropriately in response to the scheme perpetrated against it.
“The company remains deeply committed to sound and ethical business practices, in line with its Code of Ethical Conduct. Mogs has zero tolerance for fraud or corruption in any jurisdiction and will not tolerate such conduct by any Mogs employee or representative.”
The Star
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