Easipark: Council clarifies profit-sharing venture

pressure group, gunning for Harare’s 100 percent owned park management company – Easipark.
Jokes now abound over the name Easipark with others saying the youths, most of them boasting of running business empires and being well-connected politically and economically had seen “EasiMoney” as they were simply going to reap where they did not sow.
Doubts over a serious business culture crept in after some well-known moneychangers during the Zimbabwe dollar era have suddenly become the pressure group leaders.
Questions are whether these so called youths – with families – were not looking for an avenue to make a quick buck.
And why did they only target Easipark and not any other entity either Government or city owned?
Did the youths ever consider Zimbabwe’s relations with fellow Sadc member, South Africa.
The youth want the city to cut off ties with EasiHold of South Africa, which is currently supplying the parking equipment.
What is not clear is whether the youths have the capacity to supply the equipment or whether they would wait until the full roll out of the installation to start amortising their investment.
One point was missed in the whole fight for control of Easipark.
The company is a Harare City Council wholly owned entity.
This means the city’s over two million people are the owners of the parking venture.
So can the over two million people agree that only eight people whose credentials are not known outside the perimeters of the organisation reap the profits of the parking venture?
Town clerk Dr Tendai Mahachi, in a recent meeting with members of the pressure group, said it was unfair for the group to take over after local business entities snubbed council when it presented its business opportunities.
Parking management was among the areas that needed investment.
“No one wanted to do business with us. Harare yaiita kunge ine gwembe,” he said.
Dr Mahachi said the entire installed infrastructure including parking lots and parkades are wholly owned by the city.
“Our relationship with EasiHold in not equity sharing. It is profit sharing,” he said.
Reports that EasiHold of South Africa would enjoy 40 percent profit sharing raised the ire of the youths in Harare.
EasiHold is the South African company that entered into a joint venture arrangement with Harare to revive the city’s dilapidated parking.
City fathers engaged the South African-based company after local companies did not show any interest in the venture. The city did not have the foreign currency to go it alone.
But now the question is with the use of multi currencies, can the city go it alone?
The city’s precarious financial position in relation to the timeous payment of salaries, road repairs, maintenance of water and sewer pipes and refuse collection means they would rather keep the joint venture.
EasiHold manufactures parking equipment.
Payment of the equipment is derived from the 40 percent profit sharing equity.
However, reported flaws in the venture triggered demonstrations against Easipark.
The demonstrators planned to march to the Easipark offices at the Julius Nyerere Parkade.
The peaceful demonstration was however, hijacked by some unruly elements leading to an orgy of looting especially at the Gulf Complex.
The looting however, affected local entrepreneurs, as the Gulf ShoppingComplex is full of Zimbabweans traders.
The real losses were suffered by hard-working Zimbabweans, cross-border traders who travel between Zimbabwe and neighbouring Botswana and South Africa.
However, council should try as much as possible to come out clean and start declaring its pickings from the deal.
The funds should start working for the benefit of Harare residents.
Potholes, bad roads, traffic lights and road markings should all be addressed using funds from the parking account.
The funds should also develop new parking space with an option of building multi-storey-parking bays at the Fourth Street parking lot.
Reports indicate that the city makes in excess of US$100 000 a month.
Based on such healthy pickings the city can borrow money from any bank and re-invest in the parking business to generate more.
The city should also declare the funds it is generating from the Joina City’s 600 parking bays.
Through the Municipal Pension Fund, the city has a stake in the parking bays.
Previous reports have indicated that the city sold its shareholding but latest information shows that the city is indeed still part of the deal.
Dr Mahachi has instead invited the youth pressure group to table concrete proposals on various business opportunities that exist in Harare.
He said the youth never approached his office, as chief executive officer for Harare, to discuss business deals.
He bemoaned the youth’s confrontational attitude.
“I am prepared to talk opportunities. We have a binding agreement with EasiHold of South Africa. That agreement cannot be broken. It is illegal to breach the agreement.
“I welcome the youths to look at other projects,” he said.
Harare Mayor Mr Muchadeyi Masunda has maintained that the Easipark deal is irreversible.
Harare Residents Trust co-ordinator Mr Precious Shumba said the pressure group should never expect special treatment when dealing with public goods.
“Their only justification is demanding accountability but should not expect to be treated as a special group,” he said.
It is also time Government come out clear on its procurement regulations.
Local authorities are quasi-Government and are in part governed by State procurement regulations.
The procurement regulations should give thresholds within which a local authority should procure goods within its jurisdiction and outside its boundaries.

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