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TTI, BCC making 'super profits' from parking system deal

by Staff reporter
10 Mar 2023 at 05:22hrs | Views
IT seems Bulawayo motorists who were boycotting the parking management system introduced in the city in mid-February last year have bowed down to pressure amid revelations that the parking management company, Tendy Three Investments (TTI) (Pvt) Ltd, and Bulawayo City Council (BCC) are "heavily" cashing in from the parking system deal.

The private-public-partnership (PPP) arrangement saw the two (BCC and (TTI (Pvt) Ltd) raking in over $16 million, ZAR43, 000 and close to US$40 000 in January this year from parking fees, clamping fines and bus penalties.

Since the introduction of the system in the city, motorists, residents and other stakeholders have raised a red flag accusing BCC and TTI (Pvt) Ltd of not consulting them and further boycotting bays that have the system installed.

The first eight months of the private-public-partnership (PPP) arrangement saw TTI (Pvt) Ltd generating more than US$57 000 and $41 million.

TTI (Pvt) Ltd started collecting parking fees under the first phase of the PPP arrangement on February 18, 2022.

Under the first phase of the private-public-partnership arrangement it raised US$1 506, ZAR1 666 and $1 million in parking fees and US$1 982, ZAR510 and $636 000 in clamping fines.

Bulawayo City Council (BCC) workers paint parking bays.

According to the latest council report from 1 January to 31 January 2023 (a month) the parking system generated US$22 015.00, ZAR32  170, $12 862 130.95 and P210 from parking fees and US$15 134, ZAR8 810 and $3 801 925,65 from clamping fines and US$1 419,52 and ZAR 3 000 from bus penalties.

In total for the month of January alone, TTT (Pvt) Ltd raked in US$38,568.52, ZAR 43 980,00, $16 664 056,60 and P210,00 from parking fees, clamping fines and bus penalties.

The build-operate-and-transfer (BOT) partnership between TTI (Pvt) Ltd and BCC is crafted in such a way that the former pockets 70 percent of the revenue while remitting 30 percent to the council.

From the amount collected for the month of January, the local authority pocketed US$11 570, ZAR13 194, $4 999 216 while TTI (Pvt) Ltd pocketed US$ 26 997, ZAR 18 897 and $11 664 839.

The above figures, which note an improvement in revenue inflow, are an indication that TTI (Pvt) Ltd is now making "super" profits out of the deal and the figures are expected to keep on improving as more parking bays are added to the system.

The local authority, which is also reaping big from the parking system deal, is expected to channel some of its revenue towards roads rehabilitation and service delivery.

The programme initially saw motorists parting with US$1 per 30 minutes for parking in some parts of the city centre. In outlying areas, motorists were paying US$1 per hour. The amount was revised to $1 per hour in the city centre after motorists protested.

Debating on the revenue inflow councillors inquired on whether they were being channelled towards parking bays or road maintenance.

"(Ward 5) Councillor F (Felix) Mhaka inquired on the utilisation of the parking revenue. He sought clarity on whether the funds were used upon being received or allowed to accumulate for later use. Results of the parking management system had to be visible.

"(Ward 4) Councillor S (Silas) Chigora inquired whether the parking fees were channelled to parking bays or road maintenance. He further inquired why substandard materials, which were easily swept away by rains, had been used to patch potholes. The patched roads had to be redone over and again wasting resources during the process," the minutes read in part.

During the debate Ward 12 Clr Lillian Mlilo, highlighted that there was an outcry from the public concerning parking in health facilities.

She said people were failing to attend to their medical issues for long to avoid being clamped and she suggested that reserved parking should be available in the centres.

The deputy mayor Clr Mlandu Ncube, also highlighted that some residential flats in the CBD did not have backyard parking space and he was of the view that the local authority should consider removing parking fees in residential flats.

The Mayor, Clr Solomon Mguni also observed that the city's road network was in bad condition.

"Roads were no longer accessible because of potholes. Dividends from the parking fees should assist in the rehabilitation of roads," further reads the minutes.

In response to the sentiments raised, the town clerk advised that in terms of the contract, funds generated from the parking management system should be channelled to the defined areas.

"The funds were not adequate to rehabilitate the roads therefore part of the funds had been used for demarcating bays. With regards to patching of potholes, the council did not have machinery. There was a need to purchase a batching plant and jet patcher in order to effectively patch the potholes.

"He further advised that the issue of parking space on residential flats would be looked into. He said health facilities could not be exempted from paying parking fees because funds collected were used to rehabilitate the roads which were no longer user-friendly," reads the minutes.

Meanwhile, driving around Bulawayo's roads is a nightmare as they are littered with potholes, while some roads are in a state of disrepair following heavy rains across the country.

Source - B-Metro
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