Jilted contractor seeks millions in compensation from City Hall
The contractor who was sidelined in the parking meter project, Astroloble Technology Inc is engaging the courts to claim millions of dollars in compensation from the Georgetown Mayor and City Council (M&CC), for circumventing an agreement between the two parties for the implementation of a paid parking system in the city.
Completely ignoring a contract it had with the company since 2007, City Hall entered into an agreement with Smart City Solutions (SCS) for the rollout of metered parking in Georgetown.
Astroloble Technology Inc Chief Executive Officer (CEO), Saratu Phillips filed an injunction in the High Court last July, to block the M&CC from executing the project with SCS; however, the matter had its final hearing just last month and the injunction was denied.
According to Phillips, the outcome was “shockingly shocking”.
The CEO explained to Guyana Times that his company was currently engaging with its lawyers to advance legal action, claiming millions of dollars in compensation.
The M&CC signed the contract on October 1, 2007; representing the company was its CEO and the Council was represented by then Town Clerk, Beulah Williams.
Present Town Clerk Royston King acknowledged the existence of the contract via a letter to Astroloble Technology dated October 6, 2015.
In the letter, which was seen by Guyana Times, King provided guidelines for the company to begin rolling out the parking meter project.
The letter advised the company to visit its designed areas with a view to begin paid parking as a pilot project under the conditions of the contract.
However, Phillips subsequently learnt of the M&CC entering into new contract with a company called National Parking System (NPS) – which was eventually usurped by SCS.
He said no one from the City Hall has since contacted him to explain the change of plans or why his contract was disregarded.
Phillips had explained to the media that his team worked with the M&CC since December 2006 until October 2007, when he obtained an exclusive contract, valid for 25 years, to design the parking system.
He explained that it was going to cost the City Council close to US$2 million to implement a simple parking system, but according to Phillips, City Hall did not have the funds at the time.
In the meantime, he was assembling investors and technology to put everything together.
However, Phillips decided that he would not start works until the municipality amended some of its by-laws.
Valid contract
“Back and forth we were debating the by-laws and I eventually decided that I would pay to get them done in 2008. After I submitted the by-laws, the issue arose that the Government was not giving them the go-ahead to raise funds on their own. We were then stuck at this point,” Phillips explained.
However, he said the understanding between the parties was that the contract remained valid and would continue as soon as permission was granted.
Unlike the existing contract with SCS, Phillips’ agreement was neither draconian nor oppressive.
In fact, the contract stipulates that certain vehicles would have been exempted from paying for parking – unlike the case with the current contract.
These categories of vehicles include those belonging to all Ministers of Government, all Members of Parliament, Doctors, priests and pastors as well as two vehicles from each ministry, and all City Council vehicles.
The fees were also less abusive, at rates of $60 for 30 minutes whereas high priority parking zones would have attracted a $150 fee.
Special parking spaces would have been made available for two-wheel vehicles at $50 per hour.
The charge to unclamp a vehicle was set at $2500.
The city had given the company permission to conduct the paid public parking on Avenue of the Republic, Brickdam, South Road, North Road, Main Street, Church Road, Robb Street, Regent Street, America Street, Camp Street, Middle Street, Croal Street, Water Street, Thomas Street and Longden Street.