At a session unfolded on Monday, January 13, 2025, in Parliament Administration Building in Tower Hill, Freetown,  the Ministry of Communication and Zoodlabs firm appeared before the Public Accounts Committee (PAC).

The session, led by the Honorable Deputy Speaker Tawah Conteh, spotlighted the imperative for presenting verifiable and accurate information, underscoring its role in enhancing transparency while facilitating cross-checking of a financial transactions.

The discussions delved deeply into the intricate financial arrangements established between Zoodlabs and the government, which began with an agreement formalized back in June 2021.

A notable aspect of this engagement was the overall financial contributions ZooLabs made, totalling a staggering $2,264,000 by July 2022.

Zoodlabs SL LTD is an internet service provider based in Freetown.

The company prides itself of providing “high-speed internet services through a wireless broadband network.

The dialogue on Monday also highlighted the commencement of contributions to the Digital Development Fund (DDF) and the Consolidated Revenue Fund (CRF), which was officially initiated in September 2023.

As of October 31, 2023, Zoodlabs had disbursed $1,359,600 through ITGS, along with an additional $406,404 on September 29, 2023.

Between September 2022 and close of 2024, Zoodlabs deposited a total of $2.8 million into the CRF, with another $480,000 earmarked for the DDF, which was structured to span 16 quarters from June 2021 through December 2024. And the agreement underwent a revision that condensed the timeline to 14 quarters.

This alteration aimed to foster greater clarity and accountability in financial reporting and compliance.

Mahmoud Idriss, the Director of Zoolabs, explained that during the takeover, his company took on the responsibility for 23% of infrastructure valued at $23.5 million, while the government retained control over the remaining assets.

This restructuring inevitably raised questions about the necessity for parliamentary verification regarding payments sanctioned by the Ministry of Information and Communication.

In its remarks, Zoodlabs SL LTD’s Director Mahmoud affirmed that all payments made from June 2021 to December 2024 complied with instructions issued by the Ministry of Information and Communication.

Monthly payments to the CRF were initiated in September 2023, spurred by a letter dated September 6, 2023, which outlined ZooLabs’ duty to manage the East Africa Fiber Optic Cable Landing Station.

This agreement encompassed annual payments amounting to $1.44 million to the CRF and $360,000 to the DDF. By the end of the second quarter of 2023, Zoodlabs had remitted $2.26 million of the $3.6 million owed to the CRF, leaving an outstanding amount of $1.44 million.

However, it was brought to light that funds earmarked for the DDF had been re-directed to address overseas obligations, per the Ministry’s directives.

The meeting concluded with Zoodlabs committing to commence monthly payments of $180,000 to the CRF starting in September 2023, in addition to an extra payment of $360,000 by the end of that month. The Ministry of Communication was instructed to collaborate with the Accountant General’s Department to establish dedicated accounts for the DDF, aiming to enhance fund management practices. Concerns were expressed regarding the opacity surrounding government-held facilities, which were anticipated to generate significant revenue for the internet firm.

Throughout the discussions, Zoodlabs’ commitment to fulfilling its contractual obligations remained a focal point, with an emphasis on the payments made under the guidance of the Ministries of Information and Finance.

A reconciliation process verified the payment of $2.26 million as part of a strategic plan commenced in September 2023 to address any outstanding balances.

Mahmoud Idriss acknowledged existing discrepancies between formal contractual terms and informal government directives but provided assurances of the firm’s compliance with its mandates.

He also proposed the public disclosure of expenditure details to cultivate trust and accountability.

Notably, at the time of the takeover, the internet service firm retained only 18 of the original 120 staff members and facilitated payments totalling $103 million to former employees using the appropriate banking channels.

The contract also included clauses permitting the utilization of DDF funds for government-designated activities, igniting conversations about fund allocation and adherence to contractual obligations.

During the session, Mahmoud Idriss articulated the contributions to the CRF, revealing transfers of $8.1 million in 2023 and $42.9 million in 2024, culminating in a total of approximately $51 million. This prompted further discussions concerning the alignment of reported payments with actual transfers—a process necessitating scrutiny. The committee also took into account the media’s portrayal of ZoodLabs, accentuating the need for verification through comprehensive cash reconciliations, account statements, and proper fund allocation.

Further exploration during discussions highlighted the challenges posed by the fluctuating exchange rates set by the Bank of Sierra Leone, with advocacy for the implementation of a standardized payment mechanism for future transactions. The sustainability of these payment plans and their potential ramifications for government services emerged as crucial topics, with all parties recognizing the necessity for collaborative efforts, transparency, and accountability moving forward.

As the session reached its conclusion, Mahmoud Idriss made an earnest appeal to PAC members, including the Deputy Speaker, to adjourn the meeting. This request was made to allow Zoodlabs the necessary time to compile and present the required documentation, by the Standing Orders of the Sierra Leone Parliament, designed to protect the rights of witnesses during such sessions.