adminafter realising that it was not receiving any profits from the business.
The arbitrator, Advocate Firoz Girach, ruled that: “the purported cancellation of the joint venture agreement by City of Harare was unlawful, null and void and of no force or effect”.
The matter was put before Harare’s last full council meeting on Thursday, pending its automatic dissolution at midnight on Saturday to pave way for the holding of harmonised elections on July 31.
Mayor Muchadeyi Masunda, who was against the cancellation of the deal, told the outgoing councillors to always listen to expert advice from officials to avoid such future embarrassment.
Adv Girach ordered Harare City to pay 75 percent of the costs incurred by EasiHold and the arbitration costs.
However, both parties have since issued breach notices against each other, implying that the matter would still have to be decided based on the strengths of arguments by both sides.
Harare is using the breach challenge as evidence that the two parties could no longer work together.
The city is accusing EasiHold of unilaterally and unlawfully diverting revenue from corporate customers for the parking rentals on the parkades and parking lots to the EasiHold account.
Ordinarily, the funds should have been deposited in the EasiPark account.
The city alleged that EasiPark staff was made to work at Joina City and Meikles Parkades which are not part of the joint venture agreement.
According to Thursday’s full council minutes, EasiPark Harare premises were used by EasiHold to operate its other company — EasiHold trading as JN Parking.
The city further alleged that the company funds were used to fund external operations and that EasiHold’s failure to avail requested information to auditors had stalled completion of the 2012/13 audit.
On the other hand, EasiHold alleged that the council unilaterally and unlawfully changed the designated bank account and that the city banked funds generated from the business into another account that was not agreed to by both parties.
Online Reporter