EasiHold South Africa has accused Harare City Council of unilaterally approving an audit of EasiPark Harare. EasiHold chief executive officer Mr Mike Clark said Harare appointed the auditors KPMG without consulting EasiHold.
"We are concerned that in my capacity as a director of EasiPark Harare (Pvt) Limited and acting as the duly authorised representative of the 40 percent shareholder in EPH, I was not consulted in this appointment nor in the scope of work to be done," said Mr Clark.
He put the blame on Mr Alois Masepe the chairman of the management committee.
"It appears that Mr Masepe, acting in an unauthorised capacity and without the consent from shareholders or directors, went ahead on his own and signed the auditor's letter of engagement and appointed KPMG," he said.
But Mr Masepe said there was nothing sinister with the appointment of the auditors. He said the auditors won a tender to do the job adding that council needed to know the status of the company before it winds up.
"They are our auditors. Why should he fear the auditors? Auditors can not be changed willy-nilly," he said.
Mr Clark said his dispute was with the manner the auditors were appointed only.
"In short we also want the audit," he said.
Sources close to the audit said the draft findings of the audit were sent to the respective parties to the deal to respond to specific issues. A source said some of the preliminary findings point to gross abuse of funds and tax evasion.
A full report is expected before year end. Harare City and EasiPark are embroiled in a dispute over their joint venture for parking fees collection, with the City arguing that it has not benefited.