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the EasiPark parking joint venture that has been haunted by numerous problems.
The notice effectively means that EasiHold, which intended to have the dispute taken to an arbitrator, would find it difficult to rescue the deal.
Sources close to the deal confirmed yesterday that town clerk Dr Tendai Mahachi wrote to EasiHold chief executive officer Mr Michael Clark informing him of the decision to terminate the deal.
“The 90-day termination notice was signed by the town clerk on Wednesday. We now await termination negotiations,” said the source.
The notice of termination is in line with a recent full council resolution that mandated the council to severe ties with EasiHold.
But Dr Mahachi, who has always tried to keep the deal under wraps, denied that he had written to Mr Clark notifying him of the decision to terminate the deal.
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“The letter has not been written yet. I have asked the officials to draft the letter. Once they are done I will sign it,” he said.
But senior council officials indicated that the letter was indeed electronically sent to Mr Clark.
The joint venture agreement has provisions for such communication between the two parties when one intends to terminate it. Yesterday, Mr Clark confirmed receiving the notice of termination from Harare. He promised to shed more light on the action that EasiHold was going to take, but by the time of going to press he had not done so.
In an earlier correspondence he had said: “Our notice of dispute addressed to the City of Harare is dated Monday 12 December, 2011,” he said.
“At that point, we had no idea of any resolutions from the city and/or its business committee to terminate the deal.” Mr Clark had also indicated that he wanted the deal to survive and prayed that areas of dispute would be ironed out amicably.
He denied that the dispute resolution notice was in response to the business committee resolution to terminate the deal.
Meanwhile, the suspended EasiPark administration and finance manager Dr Gadzamoyo Dewah has alleged gross financial irregularities at EasiPark.
He alleged that his attempts to unearth more rot earned him the suspension. In a letter addressed to Dr Mahachi, the city’s business development manager Mr Alois Masepe and Mr Richard Chigerwe who are also the city’s appointees to the EasiPark management committee, Dr Dewah alleged that a total of US$564 062 was paid to EasiHold as management fees, yet the company was supposed to benefit from the profit shares only.
He alleged that EasiPark general manager Mr Pegias Dube was scared of his presence at the company.
“He also wants to hide from council transactions I had discovered as prejudicial to council for the period March 2010 to March 2011 which were charged on EasiPark Harare without the city’s consent or knowledge in violation of the joint venture agreement,” he said.
Dr Dewah lists the transactions as the civil works for on street parking that cost US$78 414, on street signage US$50 527, on street equipment US$19 171, equipment for parkades US$13 001, kiosks US$12 049 and on street parking costs at US$20 661.
He said EasiHold was also paid merchant licence fees totalling US$50 254 and an additional US$144 977 which was transferred from EasiPark Harare Barclays Bank account 2186 1012778 to EasiHold Barclays Account 21441012853.
Dr Dewah said transactions that caused disputes involved travel and accommodation allowances of US$25 218,16 and maintenance fees totalling US$26 463. Mr Masepe confirmed receiving the letter from Dr Dewah.
“All members of the management committee received Dewah’s report alleging financial irregularities at EasiPark,” he said.
“We are studying the allegations taking due regard that the report was issued after the author himself was suspended for unprocedurally buying two vehicles for EasiPark.
“There is need here for caution and thorough scrutiny before jumping to any conclusion.”
Online Reporter