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period prior to the signing of the shareholders’ agreement?”
“Our worry is that as the major shareholder we should drive the company.”
Clr Muzuva said there were disagreements on the number of years the deal will run.
He said EasiHold was claiming the deal should run for 10 years when they had agreed to five years.
According to a report by town clerk Dr Tendai Mahachi, there are several outstanding issues following demands by EasiHold.
He said the South African company is arguing that all clamping fees amounting to US$194 000 collected by council in metered areas be paid to EasiPark.
EasiHold is also demanding that council pays for all prepaid parking discs used in metered areas.
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In fact, EasiHold is saying that motorists with prepaid discs should not park in metered areas.
The situation is being worsened by the refusal by Mr Mike Clark of EasiHold to furnish independent auditors with information relating to the company’s investment in the business.
He recently wrote to Harare City Council business development manager Mr Alois Masepe refusing to provide the information.
Mr Clark said the agreement had nothing to do “with the scope of services of independent auditors . . . nor any requirement of any agreement between the partners”.
He said whatever investment and costs incurred by EasiHold were outside “and beyond the books of account and the financial statements of Easipark Harare (Pvt) Ltd”.
Mr Clark said the city council should only be interested in establishing whether EasiHold had fulfilled its part of the deal.
“I am not going to provide KPMG (the auditors) with a breakdown of any investment or costs that EasiHold has incurred into EasiPark Harare,” he said.
But Mr Masepe insisted the auditors should verify EasiPark Harare’s assets, which include parking meters and vehicle control equipment installed at parkades and parking lots.
“Accordingly, what KPMG are requesting for is standard in audit practice and in terms of the responsibilities and obligations the law bestows on external auditors,” he said.
“City of Harare, as a co-shareholder, is obviously and keenly interested in getting an independent opinion on the value of the investment EasiHold has made in EasiPark Harare.
“The figure is and should not be guarded as a secret of EasiHold.”
Mr Masepe said such information should be made public because it is the basis of the joint venture and facilitates profit sharing.
Council entered into a joint venture with EasiHold in 2009 amid protests from various stakeholders that the deal would not benefit the city.
Many wondered why the city opted for a foreign company to operate the parking bays when there were locals with capacity to do so.
Online Reporter