City, CVR sign agency service deal

Municipal Reporter
Harare City Council has clinched a deal with the Central Vehicle Registry that will see the municipality re-registering vehicles and issuing number plates on change of ownership. This follows the signing of an Agency Service Level Agreement between council and the CVR. The city will get a five percent commission from vehicle plate sales.

The Ministry of Transport and Infrastructure Development has proposed an increase of the commission to 10 percent.

According to the agreement which town clerk Dr Tendai Mahachi was authorised to sign by the Finance and Development Committee, the city will collect fees for number plates exchanged and remit to CVR all collections made less commission once a month.

CVR agreed to supply the city with number plates.

“CVR will supply City of Harare with all the stationery necessary for conducting CVR transactions, collect old number plates replaced from participating City of Harare outlets and issue and when necessary, any instructions and or directions through circulars and or correspondence.

“CVR shall pay a commission plus any statutory requirements from the Reserve Bank of Zimbabwe,” reads part of the agreement.

The city assigned a client service manager responsible for the daily operations, service quality and other processing aspects of the service level agreement. The parties agreed that if any dispute arises in connection with the contract, such dispute shall in the first instance be resolved amicably by both parties and if amicable settlement fails, the Arbitration Act will govern the proceedings of the arbitration.

They also agreed that the five-year Service Level Agreement will remain in force for one year unless terminated by either party upon giving three months notice. The city also wants Government to return the vehicle licensing functions to local authorities as they accuse the Zimbabwe National Road Authority of giving meagre resources to councils.

zinara took over the management of funding for roads’ construction in 2009.

Last year, council tasked Dr Mahachi to engage zinara over meagre disbursements of road funds to the city.

The city says since the takeover of vehicle licensing by zinara in 2009, not much revenue has accrued to council and there is no clear basis of allocation of vehicle licensing fees.