Zanu-PF blasts BCC over parking system

THE ruling party, Zanu-PF is the latest organisation to blast the Bulawayo City Council (BCC) over the handling of the parking management system tender where they questioned the technology and value addition being offered by the company.

Last month, opposition party, Zapu, delivered a petition to the local authority over the system while more residents resorted to signing an online petition in a bid to force BCC to either reduce the latest parking management system fees or scrap them altogether.

Zanu-PF has also added their voice on the matter through a letter sent to the Town Clerk, Mr Christopher Dube by the party's provincial secretary for information and publicity, Archie Chiponda.

"In addition, we question whether the technology or value addition being offered by the foreign company is so unique that the BCC could not identify a capable local company or better still carry out the project itself.

An individual employed within the Central Business District will part with at least US$100 per month in parking fees, severely eroding their income.

"There have also been complaints from businesses within the CBD that are being negatively affected by the fall in traffic volumes in the CBD due to the new parking system.

Some businesses have already noticed the trend of falling revenues since the introduction of the parking system," reads part of the letter.

Chiponda questioned the 70 percent to 30 percent revenue split between the South African investor, Tendy Three International (TTI) and BCC, noting that with the company saying they have so far brought in equipment worth US$700 000 they were yet to actually channel in investment worth US$1,5 million from their tendered investment figure of US$2,2 million.

"This creates many questionable aspects with regards to the TTI investment. Primarily that the revenues generated paint a picture of a situation in which supernormal profits are being realised at the expense of Bulawayo residents.

"Simple calculations reveal that at a gross profit of US$5 040, discounted by 50 percent to cover costs leaving US$2 520, the payback period for the TTI investment is two years and 142 days.

"The partnership is stated to run for six years.

In total, over a period of six years TTI stands to make potential net profits of US$4 420 080, in comparison to US$941 760 for the BCC.

"It is evident that TTI stands to make a return of 100.9 percent.

The internationally acceptable average return on infrastructural projects of this nature is 20 percent.

Taking into account that there has been a very small initial outlay of US$700 000 to kickstart the project, we can safely assume that the rest of the investment will come from internally generated revenue," reads part of the letter from Chiponda.

He said the fact that TTI will be using money they make from Bulawayo residents to continue the spreading out of their parking programme, was grossly unacceptable.

"As such, we would insist that this partnership, from inception at tender stage to date, is unpacked and all details made available to the public.

"Such a development deserves to be put under the necessary scrutiny in order to achieve the most equitable outcome for residents, which is also most profitable to the BCC.

"If supernormal profits stand to be made from this undertaking then at least let them be enjoyed by the residents of Bulawayo, through them being accrued by the BCC, who in turn will improve service delivery to the City of Bulawayo," said Chiponda.