City fathers have resolved to engage two Harare based companies to manage the city`s parking management system in a joint venture arrangement without going to tender.
The local authority has been managing the parking bays through its own security officers who collect parking fees from the motoring public.
The parking management tender has been shrouded in controversy since the council first invited bidders in 2011.
However, the initial tender was shelved despite Megalithic (Private) Ltd winning the tender.
In 2017, the company was informed that it had no experience to run the parking management system leading to council cancelling the tender.
Last year, the company dragged the council to the High Court or contempt of court after the local authority failed to comply with a court order which dismissed its bid to cancel a tender that was initially won by the firm.
The Court has since dismissed the application by Megalithic (Private) Ltd paving way for council to revisit the tender process.
Now, the councillors want the local authority to award the tender to Ducretion Logistics (Private)Ltd and Lauvax (Private) Ltd/ A Pro Park on a joint venture arrangement.
“Alderman E. Rafomoyo pointed out that the second resolution which was to give parking management to same two Companies was not a procurement for services it was a joint venture regulated through the Joint Venture Act.
Council had made the resolution with the view that the joint venture was a partnership that was going to benefit the city. He therefore suggested that in order to implement parking management system timeously, Council in the meantime should continue with the joint venture and do away with the tendering process as it would be time consuming,” reads the latest council report.
“The Deputy Mayor (Councillor T. Kambarami) also felt that the two companies should be awarded the parking management partnership. However there should be conditions attached to the Joint Venture. He further added that the companies should provide performance guarantee and they should sign a memorandum of understanding with Council as per the provisions of the Joint Venture Act.
“He proposed that conditions should include 5 year experience of doing parking management, and the companies should move on site within 8 weeks. Council should negotiate on the percentages before the matter was taken to the Ministry.”
In response to the councillors submissions, Chamber Secretary Sikhangele Zhou noted that there was another Council resolution (4th April, 2018) that the proposal by the two companies (Ducretion Logistics (Private)Ltd and Lauvax (Private) Ltd/ A Pro Park) relating to the parking meters, be accepted.
She also revealed that there had received an objection from the Bulawayo Progressive Residents Association (BPRA), querying why the two companies were selected without going to tender.
“The Chief Internal Auditor was currently seized with the matter together with the issue of the four councillors who were allegedly funded by a parking management Company to visit Harare. In her view it would be proper to await the Chief Internal Auditor’s report before any implementation of the said resolution,” reads the report in part.
“On the issues of the Joint Venture she advised that in her view Council had put the horse before the cut in accepting the proposal from the two companies without doing preliminary steps that were a requirement for the establishment of a joint Venture.
“She advised that unsolicited Bids had to meet the criteria outlined in the Joint Venture Act and some of the preliminary steps would analyse the concept note and after appraisal this be submitted to the Joint Venture Unit of the Ministry of Finance which would, in turn, seek approval for a feasibility study wherein if approved the feasibility study will be done by a consultant chosen by the contracting authority (Council ) at the expense of the proposer.
“The results of the feasibility study and negotiations could be finalised to lead to decision to allocate companies space to operate from.”
The councillors then resolved to “proceed with the Joint Venture approach and management be authorised to negotiate with the companies and comply with requirements of the Joint Ventures Act.” They also passed a resolution that Council rescinds and reviews its decisions of the 4th April, 2012 and 4th April, 2018 relating to this matter.