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Cabinet tells City Hall to suspend parking meters for three months
…Company to take matter to court
The parking meter project has been halted for three months as a result of a Cabinet decision
yesterday. Government sources have confirmed that the matter had engaged Cabinet’s attention for a number of weeks and a decision has been made.
According to information received yesterday, Cabinet asked Minister of Communities, Ronald Bulkan, to inform the Georgetown Mayor and City Council to place the project on hold for three months and to use the period to engage stakeholders, particularly the protesters who for six weeks have called for the revocation of the project.
In light of this decision, the company, Smart City Solutions who signed the contract with City Hall to implement paid parking, will not sit idly by for three months. A source close to the company said that if the suspension goes into effect, Smart City Solutions will take the matter to court.
The six protests in-front of City Hall were organised by the apolitical group, Movement Against Parking Meters.
It is expected that City Hall will issue a statement on the issue today. It was only last week that Minister of State Joseph Harmon said during a post Cabinet press conference that government wants to see more consultations being done about the project.
Harmon said, “I can say to you that it is in fact a matter which cabinet is concerned about; that cabinet basically believes that we should continue to have consultation with stakeholders so that we can arrive at a position that is beneficial to all parties.”
He said that at the appropriate time, once the government is satisfied with all of the information before it, then a decision would be made in relation to City Hall itself since the contract is between the municipality and SCS, a private investor.
The action comes months after public outcry began against the project. Protesters have described the implementation of the project as a clear case of bullyism.
Meanwhile, since its announcement, several red flags were raised concerning the project. Last May, four City Council representatives proceeded on a due diligence trip to Mexico and Panama.
They were Mayor Patricia Chase-Green; Councillor Junior Garrett; Chairman of the Finance Committee Oscar Clarke; and Town Clerk, Royston King.
According to Chase-Green the purpose of the trip was to determine whether the company was capable of performing the tasks which they had proposed. The company had apparently done similar projects in the two Central American states.
The city officials were condemned for going on the trips since it is customary in such arrangements that a due diligence inquiry into a company is done before parties sign the contract.
Tainting the contract further, the travelling and accommodation for the officials were paid for by the company.
Further, persons could have only seen the contract by visiting the Town Clerk’s office. When Kaieteur News reported on details of the original contract it was revealed that if City Hall wishes to unilaterally terminate the contract without the written consent of the company, the City shall pay SCS a lump sum payment equivalent to the total direct and indirect, hard and soft cost cumulative gross investment of the company in the project.
However, this cost is compounded by an additional 15 per cent of the total direct and indirect, hard and soft cost cumulative gross investment of the company in the project. When that 15 per cent is calculated it is to be multiplied by the number of remaining years under the agreement.
The company was also given the power to begin charging at nights in areas which are high traffic spots. The enforcement activities of the project have also been heavily criticised.
Motorists who choose to park within paid parking zones but not in a parking space will be fined. The initial fine for not paying to park was deemed as burdensome. Further, it was later uncovered that former Director of the company, Ifa Kamau Cush, had plead guilty to grand larceny in the third degree in the County Court of Nassau County.
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