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insisting that the matter should go for arbitration. But sources at Town House are adamant the deal ends in March, failing which they will forcibly evict EasiHold from parking bays.
EasiHold and the city formed EasiPark Harare in which they would share profits from the parking venture.
Harare City Council has given a 90-day notice to terminate the deal, but EasiHold insists the matter should be taken for arbitration to resolve areas of dispute and allow the deal to continue.
Harare is entitled to a 60 percent profit share from the deal, while EasiHold is entitled to the remainder.
Nothing has been shared since 2009 when the deal commenced.
EasiHold chief executive officer Mr Mike Clark yesterday said they had initiated legal proceedings to stop the termination of the deal.
“We have not accepted the city’s notice to terminate the joint venture agreement,” he said.
Mr Clark said he wrote to the city on January 5 stating why the joint venture could not be terminated and why the two parties should go for arbitration.
EasiHold declared a dispute and informed the city on December 12, but council responded with a notice to terminate the agreement on December 22.
Mr Clark said the two parties should first resolve the areas of dispute before any other action could be taken.
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He wants an arbitrator to make a ruling on the dispute.
EasiHold, Mr Clark said, was not comfortable with certain clauses in the draft shareholders’ agreement.
He alleged that the provisions were “unilaterally put by the city”.
Mr Clark said EasiHold had done all that was supposed to be done and blamed the slow progress on the implementation of the rollout plan on the council.
He said the venture had created 310 jobs in Harare and could have doubled the figure had all the things that were initially agreed upon been implemented.
EasiPark should by now have installed control booms on entry and exit points at Market Square, Charge Office, Cameroon, Rezende North and South and Fourth Street bus terminuses.
Mr Clark dismissed reports that some high-ranking Zanu-PF officials had been given shareholding in the business.
Online Reporter