A South African businessman involved in a major oil pipeline project between Mozambique and Zimbabwe has been connected to a US$45 million fraud scandal in Ghana. The businessman, Errol Gregor, is now spearheading a plan for a second oil pipeline linking the Mozambican port of Beira to Zimbabwe’s capital, Harare.
An investigative report released by The Sentry has raised serious concerns about the potential for corruption in the Zimbabwean infrastructure deal, which involves South African pension funds and a UK-based bank. The Sentry, an investigative organization focused on exposing predatory networks benefiting from corruption, repression, and conflict, uncovered troubling ties between Gregor and previous fraudulent activities.
Gregor, who was previously implicated in a large-scale fraud case in Ghana, is now moving forward with the multi-billion-dollar pipeline project through his new company, Coven Energy. The pipeline aims to position Zimbabwe as a central hub for fuel distribution in Southern Africa. However, questions regarding transparency and due diligence have been raised given Gregor’s past and the potential involvement of corrupt actors in the project.
The investigation found that Gregor, in a 2016 bid for control of an oil facility in Ghana, allegedly authorized over US$18 million in suspicious payments through intermediaries, including Edwin Obiri, a Ghanaian deal broker. These payments raised concerns about potential bribery and corruption, with some funds allegedly reaching high-ranking political figures.
Despite ongoing legal proceedings in South Africa regarding his past dealings, Gregor is pushing forward with plans for the Zimbabwe-Mozambique pipeline. The Sentry has expressed concern about the lack of transparency surrounding the project, noting that British banks and South African pension funds were possibly drawn into fraudulent transactions related to Gregor’s previous business activities in Ghana.
The report calls for more rigorous transparency and accountability in infrastructure development, particularly in countries with entrenched corruption. The Sentry has recommended that the governments of Zimbabwe and Mozambique commission an independent feasibility study for the proposed pipeline project and urged both governments to implement enhanced scrutiny measures for such large-scale projects.
The investigation also highlights the involvement of international financial institutions, such as Standard Chartered Bank in the UK, and South African pension funds, which may have inadvertently supported Gregor’s questionable dealings. The Sentry further advises that law enforcement agencies in the UK, Ghana, and South Africa investigate the payments linked to Gregor’s former company, Mining Oil and Gas Services (MOGS), and ensure that no anti-bribery laws were breached.
In response to inquiries about the pipeline project, Zimbabwe’s Minister of Energy and Power Development, Edgar Moyo, stated that he was unfamiliar with the specific details regarding the deal. He indicated that discussions on the second pipeline and feasibility studies were ongoing, with the National Oil Infrastructure Company (NOIC) and Companhia do Pipeline Moçambique-Zimbabwe involved in the talks. However, he expressed limited knowledge about the specifics of the deal.
The investigation by The Sentry serves as a reminder of the importance of conducting thorough due diligence and ensuring transparency in major infrastructure projects, especially those involving potentially corrupt actors with questionable pasts.
