Govt. finds parking meter contract burdensome and heavily in favour of investors

Aug 05, 2016 News

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– recommends accountant review fees

While noting that the terms and conditions of the controversial parking meter contract are

burdensome and heavily favour the investors, the Government has recommended that the details of the agreement be reviewed by an accountant.
The recommendations were made following considerations from Attorney General and Minister of Legal Affairs, Basil Williams and Finance Minister, Winston Jordan.
The parking meter project contract, signed last November, has been generating heavy criticism against the Georgetown Mayor and City Council (M&CC). The contract was signed under the previous Council, by Town Clerk, Royston King, for a consortium to spend US$10M to install solar-powered parking meters around the city.
However, several of the councillors, including Deputy Mayor Sherod Duncan, have been complaining of limited information regarding the agreement which provides for City Hall to receive 20 percent of the gross revenue and the investors, National Parking System (NPS) and Smart City Solutions (SCS) Inc, 80 percent.
During a Post Cabinet press briefing yesterday, Minister of State, Joseph Harmon announced that Cabinet had reviewed two reports submitted by Minister of Finance and the Minister of Legal Affairs on their findings of the contract.
“The sum total of the finding was that there was nothing illegal about the contract and it appeared from a review of the documents that the terms and conditions were onerous and they were heavily in favour of the concessionaire,” Harmon stated.
The Minister of State said that the AG therefore recommended that the Mayor and City Council hire an accountant to review the rates and fees contained in the agreement between City Hall and the investor.

According to Harmon, the recommendations were handed to Minister of Communities, Ronald Bulkan, who has overall jurisdiction for the councils.
He said that Bulkan has since written to the Council advising them on Government‘s proposals. Affirming Government’s position on allowing the Council autonomy in carrying out its functions, Minister Harmon said the Government has allowed the Minister of Communities and Georgetown Mayor and City Council full scope to deal with the matter.
“As a general principle, we don’t interfere with activities or actions of the Council, unless they are being patently illegal or unlawful.”
Earlier this year, the Georgetown Mayor and City Council announced that some 1,500 parking spaces will be erected between Stabroek, South Road, Camp Street ,Church Street, Regent Street ,Robb Street and other central commercial areas of the city.
The Mayor and City Council had disclosed that the parking meter project, which will bring in 20 percent of the gross of the revenues to the city, with zero investment by the council.
The council claimed that the 20 percent was arrived at after intense negotiations with National Parking System (NPS) and Smart City Solutions (SCS) Inc.
Concerns were however raised about the authenticity of the two companies after little information was found on them.
But, despite the objections, the companies have been moving ahead with efforts to implement the project. During a consultation exercise with taxi operators at the conference centre of the National Library yesterday, Director of both NPS and SCS, Kamau Cush, listed a number of benefits which he claimed would be generated as a result of the project.
Cush said too that the meeting would serve to clear the air on what he described as “manufactured controversy” surrounding the project. However, the Director refused to comment on the issues raised about the details of the contract. He essentially noted that he was not there to speak on the model of his business.
The SCS official told the small gathering of operators that the plan is to bring development, provide jobs and ease to the traffic congestion in the city. Cush said that the regular parking fee is set at $50 for every 15 minutes usage, but reassured that taxi and minibus operators would be given special rates to conduct their business.
Further highlighting the benefits of the project, Cush claimed that about 117 jobs will be provided to facilitate the system. These include call centre representatives, manufacturers, Information Technology staff and other technical persons.
“The lowest category of staff will be paid at least $100,000 per month,” Cush added. The Parking Meter Project is expected to come on stream in September. According to Cush, SCS will be installing some 415 meters at 4,500 spaces across Georgetown.

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