Necrovarus

Necrovarus is a ghostly priest and mage. He arrived in Port Phasmatys from the Eastern Lands.

Necrovarus is heavily involved with the Ghosts Ahoy quest. When the people of Port Phasmatys were alive, he offered to help save them when Lord Drakan demanded blood tithes from them. Necrovarus caused the Ectofuntus to be built, which created a magical barrier around the town, which Drakan and his Vampyres cannot cross. But, there was a side effect. All the people in the town died, became ghosts, but could not go on to the next world. This was the true intention of Necrovarus, who intended to use power of the ghosts and the Ectofuntus for his own evil purposes. (Necrovarus himself seems to have died when the Ectofuntus was built, but this in effect conferred a form of immortality on him without stopping his worldly ambitions.) At the end of the quest, you thwart Necrovarus and force him to set the ghosts free. They can now move on to the next world if they wish, although most if not all have chosen to remain in this world at Port Phasmatys, at least for the time being.

Although Necrovarus is basically a tyrant, his Ectofuntus does protect the citizens of Port Phasmatys from the Vampyres. While ghosts of course cannot give blood tithes, it seems likely Lord Drakan would just enslave them for other tasks suited to their ghostly natures.

Trivia
Necrovarus
 * In the Ghosts Ahoy quest, when using an enchanted ghost speak amulet you can command Necrovarus to do an impression of a chicken without discharging the amulet. In his impression he says "Cluck cluck squuuaaaakkkk cluck cluck" then "I think I've laid an egg...".
 * Also using this amulet you can convince him to tell you a joke without discharging the amulet. The joke he replies is "Knock Knock, Who's there, Egbert, Egbert who?, Egbert no bacon".
 * Necrovarus' name probably comes from the Greek prefix necro, meaning death.