Issue 00390 

Oct 8 - 14, 2005

Local News

Parking fees agents default payments

By Arusha Times Reporters

Just about three months after new agents were awarded tender of charging vehicle parking fees in Arusha City, the contract with the agents is facing hitches. Two of the companies have reportedly failed to remit a total of about Tsh.88 million to the Municipal Council.

Sources from inside the council reveal that M/S Makumira Petroleum Station Limited, which is the company chosen to collect private vehicle parking fees in town, effective from July 2005, has not paid its dues to the authorities, for the two consecutive months of August and September this year, amounting to Tsh.45.8 million, at the rate of Tsh. 22.9 million per month.

This, according to the sources is despite the fact that the company continues to charge parking fees, at the rate of Tsh.200 per hour from each vehicle which parks within the 'city' precincts, 12 hours a day, from Monday to Friday and six hours every Saturday.

An official letter with Reference number; AMC/ME/106/325 made available to this paper this week, has also mentioned the other company, M/S Arusha Building Component, of having defaulted to settle its two months dues amounting to Tsh.9.6 million, from collecting daily operating fees from the town commuter vans.

The letter, dated 12th of September this year, was signed by the Municipal Engineer, Simon Ngagani as an official directive to the Council Attorney, instructing the latter to take the necessary steps against the two companies, suggesting both the nullification of their contracts and liquidation of their bond capital placed as security for the undertaking.

".... In reference to the contract (s) that (the companies) had tied with the (Municipal) council and the 2003 Arusha Municipal Council By-law on vehicle parking fees, I suggest legal steps be taken against them for breaching the contract, including stopping their respective contract and using their security bonds..." Read part of the letter, a copy of which was sent to the Municipal Director.

Each collecting agent is required to pay his monthly dues to the council in advance, on every 25th date of each month for every next instalment. The payments for October for instance, were supposed to be already settled by September 25. If the two companies have not done so, then that will be their third month debt as well, shooting up the cumulative debt to Tsh.87.9 million.

The Municipal Director expressed his concern over the issue, though adding that the Council Treasurer was in better position to comment. The Treasurer, one Mr. Mpeta said he should be given time to consider the matter.

When Makumira Petrol Station was contacted, its spokesman, Morris Ngulelo said that his company highly respected the contract it had signed with the council. He however neither admitted nor refuted the allegations of defaulted payments.
"All I can say is that, the winning of this tender has irked many people who are now out to mud-
sling us due to sheer jealousy," said Ngulelo. "You see, many people here are not very happy with our country's development and will do anything to sabotage it!" Efforts to contact the people in charge at Arusha Building Component were unsuccessful.

Makumira Petrol Station won the vehicle parking fees collection tender last July, beating three other companies including the former agent, JN Mining Limited, which was the first company to collect the levy since its introduction in 2003. Arusha Building Component on the other hand, won the town-bus fee collection tender, while M/S Sunrise Limited was awarded the tender to collect terminal fees for larger buses that dock in town. M/S Sunrise Limited however are commended for submitting their dues in time.

Local News

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