TENDY THREE Investments (Pvt) Ltd, the company that manages parking bays in Bulawayo, is reportedly operating at a loss, to a point where the management is preferring to switch to 30% and allow the Bulawayo City Council to have 70% of the revenue.
The company recently proposed that BCC takes over 70% of revenue on condition it bears all the operational costs.
BCC contracted TTI in 2022 to manage the parking system in the city under a US$2 million public-private partnership (PPP) tender based on a build, operate and transfer agreement in which the local authority aimed at creating revenue for and providing employment to hundreds of residents of the city.
TTI started collecting parking fees under the first phase of the PPP arrangement on February 18, 2022.
Under the arrangement, BCC is getting 30% of the revenue collected from parking management while TTI gets 70%.
TTI chairperson Lizwe Mabuza this week said the company was operating at a loss.
“I am a founder of TTI and I have proposed to BCC for the 70%-30% set up currently existing to be reversed so that they get 70% and TTI pockets 30%, which BCC has shunned,” he said.
“As TTI, we are comfortable with 30% as long as BCC pays salaries, taxes and most importantly recovers the running cost of TTI which we have not attained so far from their share.”
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A reliable source told Southern Eye that TTI has been running at a loss for the past two years, a development which was confirmed by an audit done by an international reputable company.
Mabuza is a realtor with properties in South Africa and abroad and he is also into mining in Zimbabwe.
The businessman is also into agriculture and security with more than 2 000 security guards under his stewardship.
Mabuza recently proposed to fund a bitumen plant that would employ Bulawayo residents and improve Bulawayo roads in the central business district and residential areas.
Ahead of TTI’s consideration for Bulawayo parking management, the Zimbabwe Investment and Development Agency made an assessment in which its officials went to South Africa to inspect the parking projects it is running in that country, where they were satisfied that it could handle the US$2,5 million parking project in Bulawayo.
However, the current scenario where TTI is said to be operating at a loss is frustrating investors, resulting in Mabuza proposing a slight shift in the deal.
TTI employs more than 300 people with a salary bill of plus or minus US$100 000 per month excluding other operational costs.
