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Midlands Correspondent
THE Kwekwe City Council has for the second time taken to tender the leasing of four beer halls after initial bids failed to meet the minimum criteria the local authority had laid down.
Most prospective tenants who had submitted bids for the takeover of the council properties had failed to raise initial investment start up capital of $5,000 for the upgrading of facilities, Kwekwe mayor, Councillor Matenda Madzoke said.
Town Terminus Beer hall, Amaveni and Sunungukai (Section 7) Beer halls have been taken to tender by Dandaro Marketing, a brewery division owned by Kwekwe City Council.
Garandichauya Beer hall is also one of the recreational facilities set to be taken over by private players.
Clr Madzoke said the decision to privatise had been reached after realisation council was making losses in the entities due to high maintenance and labour costs among other expenses.
“Councils nationwide are leasing such facilities because they’ve become liabilities in the sense that councils wages are negotiated and it becomes difficult to pay such high wages including benefits such as pensions and other contributions whereas it’s easier for private players to negotiate their salaries with individuals.
“The cost of renovating such facilities has become expensive to council since there are other pressing commitments and we couldn’t meet the expectations of patrons hence we’re leasing the beer halls,” he said.
Cllr Madzoke said those who would take over operations should make improvements on the beer halls so that the asset value of the properties is protected.
As part of the requirements of the tender on the lease of the council facilities flighted in the Press by town clerk, Emmanuel Musara, applicants should among other things, “insure the allocated beer hall before commencement of operations and must be able to support initial investment start up capital of not less than $5,000 for upgrading the facilities”.
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