In a bid to peacefully offset its financial liabilities, Parliament on Friday, January 2025 engaged Zoolabs at a crucial meeting that took place at the administrative building of Parliament in Freetown focusing on the Auditor General’s Report for 2023.

The resolution between Zoolabs and the Public Accounts Committee (PAC) was navigated in a structured and conciliatory manner under the able leadership of the Deputy Speaker, Hon. Tawah Conteh, who also served as the Chairman of the PAC.

The primary objective of this deliberation was to thoroughly address the outstanding financial obligations of Zoolabs while ensuring that principles of accountability, transparency, and fairness were maintained throughout the resolution process regarding the findings presented in the Auditor General’s report.

Central to the discussions was the necessity of formulating a payment plan that would enable Zoolabs to settle its financial liabilities to the Consolidated Revenue Fund (CRF) in a manner that would not compromise the company’s financial stability or operational capacity.

The foundation of the issue at hand stemmed from a series of delayed payments attributed to the presidential directives which mandated Zoolabs to divert specific funds toward interim liabilities arising during the transitional period following the winding down of the Sierra Leone Cable Company (SALCAB).

This transition phase encompassed the critical task of maintaining the national fiber optic infrastructure, an essential component for advancing the nation’s digital development agenda.

In accordance with the presidential directive, Zoolabs was authorized to manage these expenditures, which were later reconciled in July 2022. Following this reconciliation process, the Ministry of Finance and the PAC cooperatively identified an outstanding balance that required further attention and resolution.

However, despite the ongoing efforts to clarify and reconcile the financial discrepancies, payments to the CRF became significantly stalled between August 2022 and August 2023. This delay raised serious concerns, as highlighted in the Auditor General’s report, prompting a call for urgent action. In acknowledgment of the pressing nature of the situation, the Ministry of Finance, in concert with the Ministry of Information, initiated discussions with Zoolabs in September 2023, aimed at formulating a mutually beneficial solution to the longstanding issue.

As a result of these negotiations, an agreement was reached that allowed Zoolabs to resume payments while also establishing a structured framework to address the backlog of outstanding liabilities. The resolution stipulated that Zoolabs would commit to making monthly payments of $60,000, thereby facilitating the clearance of its total outstanding liability of $760,000 over 12 months. This meticulously crafted payment plan was designed to strike an equitable balance, ensuring the government’s recovery of its owed funds while simultaneously allowing Zoolabs to continue its operational activities without incurring undue financial distress.

Throughout this process, the PAC took a deliberate approach, emphasizing the crucial importance of accountability while stressing the necessity to avoid any measures that could disrupt Zoolabs’ business continuity or impose excessive financial strain on the company. In conjunction with this resolution, it was also established that Zoolabs would provide comprehensive documentation for each payment made. This requirement was instituted to facilitate proper tracking and recording of each transaction within the PAC’s ongoing inquiry, thereby guaranteeing transparency and alignment with the principled standards of public financial management.

The PAC firmly underscored that this resolution not only reflects its ongoing commitment to uphold the integrity of public accounts but also fosters an encouraging environment that supports sustainable business practices.

As discussions concluded, the resolution received unanimous endorsement from the PAC, with committee members expressing their satisfaction with the achieved outcome. The Honorable Deputy Speaker extended commendations to all parties involved for their cooperative spirit and willingness to collaboratively seek solutions that cater to both public interest and Zoolabs’ operational challenges.

The session wrapped up on a positive and hopeful note, with the PAC recognizing the paramount importance of accountability and collaborative engagement in addressing matters of national significance. This resolution not only reaffirmed the essential role of Parliament in promoting transparency and good governance but also demonstrated its capability to facilitate practical solutions that ultimately benefit both government interests and private sector stakeholders, fostering a productive relationship that is vital for the nation’s economic progress.