According to Business Committee minutes of 28 June 2012, Council resolved that a new company called City Parking would initially install parking metres in areas not covered by Easipark as the arbitrator deals with contract termination issues.
Council and Easihold entered the agreement to control parking bays in Harare in 2009, with the former supposed to get 60 percent of the profits and Easipark the remainder.
Easihold reneged on the contract, saying it could not share the three-year profits with the municipality until a shareholder agreement was signed. The company was also refusing to have its operations audited, arguing that it was not part of the deal they had sealed.
Council recently reported that the joint business had made a $1,3 million profit from its operations between March 2010 and December 2011 and it was yet to receive $775,555 from the profit-sharing as part of its 60 percent share.
Southerton Councillor, Peter Moyo, said the council should in future harness proceeds of such businesses.
“We all know that Easipark pocketed over $1 million yemahara (easy money) and this is a lesson. Next time we should be the ones receiving this money,” said Moyo.
Post published in: Business