Interpreting contract: LePARK, city govt differ on revenue sharing

Meeting called on Tuesday to resolve differences.

LAHORE:

Officials from the city government and the Lahore Parking Company (LePARK) would meet on Tuesday to resolve their differences over the revenue-sharing formula, The Express Tribune has learnt.

On February 6, Advanced Global Communication Networks (AGCN), Green Parking and Inbox had signed an agreement with the LePARK to take over more than 240 parking lots. Green Parking was later replaced by Zhongxing Telecommunication Equipment Corporation.

It was agreed that 45.4 per cent of the revenue generated would be shared with the LePARK.

In an agreement signed between the city government, the nine town administrations and LePARK on December 19, 2012, the LePARK had agreed to give 75 per cent of its revenue to the city government on a quarterly basis.

LePARK has hired nearly 700 daily wage workers to manage parking sites.

According to LePARK officials, the company received Rs191 million in the financial year 2013-2014.

Of the Rs191 million, the company paid Rs10 million to a Turkish firm, Universal Cleaning Service, for automating and managing a parking lot in Liberty Market. It deducted another Rs10 million for providing services to the city government during Ramazan.

Of the remaining Rs171 million, it paid nearly Rs70 million to its daily wagers. It took Rs25million (25%) and handed over Rs75 million (75%) to the city government.

The city government maintains that the LePARK should pay the daily wages from its (25 per cent) share.

Municipal Services Executive District Officer Masud Tamanna had written to the district coordination officer (DCO) a couple of weeks ago informing him about the disagreement. The DCO formed a committee 10 days ago, headed by the EDO, to resolve the issue.

Tamanna told The Express Tribune it was LePARK’s responsibility to pay the daily wagers.

He also objected to the number of employees hired by the company.

Fasiuddin, a spokesman for LePARK, said the company would pay the daily wagers from its revenue and share the profit.

Published in The Express Tribune, September 29^th, 2014.