KEY POINTS
- Errol Gregor is under scrutiny for a Zimbabwe pipeline project.
- Past bribery allegations in Ghana have resurfaced.
- Mogs denies involvement and is pursuing legal action.
South African businessman Errol Gregor is under scrutiny for his role in a $850 million oil pipeline project in Zimbabwe, amid allegations of past bribery in Ghana. This development follows an investigation by The Sentry, a U.S.-based organization focused on exposing illicit networks.
Partnership with Zimbabwe on oil pipeline
Gregor’s new venture involves a partnership with the National Oil Infrastructure Company (Noic) to develop Zimbabwe’s second fuel pipeline.
The pipeline from the Mozambique’s Indian Ocean coast to Zimbabwe will in turn may make the region a distribution center of fuels.
The current infrastructure which comprises Noic current pipeline from Feruka to Harare is responsive to Zimbabwe’s vision to be one of the leading oil supplier in Southern Africa region.
According to The Sentry’s report, the new pipeline could be highly profitable if the plans proceed as intended. This potential is rooted in Zimbabwe’s strategic geographic position, which would benefit both countries economically.
Past allegations and ongoing investigations
This ambitious project has been marred by Gregor’s past. While he was in charge of Mining Oil and Gas Services (Mogs), he was accused of authorizing multimillion-dollar bribes to obtain an offshore oil contract in Ghana.
According to whistleblowers, $18 million was sent to Ghanaian politician Kingsley Kwame Awuah-Darko and dealmaker Edwin Obiri.
According to New Zimbabwe, Gregor has denied these claims, saying, “No one was ever bribed. That never happened. Everything was above board.” Nevertheless, his departure from Mogs sparked lawsuits and additional investigations.
Company and whistleblower responses
Mogs’ spokesperson, Alan Fine, clarified that the company had no involvement in the Zimbabwean pipeline project and did not assign it to Gregor.
Fine also mentioned that Mogs was a victim of fraud in the Ghana deal. An investigation by EY revealed that payments were made to Obiri’s company, Africore Energy, without valid commercial reasons.
“The investigation established that Mogs made payments to Africore in exchange for little or no value,” Fine explained. In response, Mogs took legal action to recover the funds and terminated its relationship with Gregor.
The matter was also reported to South African police, and the investigation continues.
