Lafarge Cement Faces Heavy Penalties for Terror Financing in Syria

lafarge cement — CA news

Lafarge Cement has been dealt a significant blow after a Paris court found the company guilty of financing terrorism through its Syrian subsidiary, resulting in a fine of 1.12 million euros and the confiscation of 30 million euros worth of assets. This landmark ruling marks the first time a company has faced trial in France for such serious charges.

The court’s decision also led to jail sentences for key executives: former CEO Bruno Lafont received a six-year prison term, while Christian Herrault, the former deputy managing director, was sentenced to five years. The court highlighted that Lafarge paid a total of 5.59 million euros to armed groups, including ISIL and the al-Nusra Front, to ensure the operation of its plant in Jalabiya during the Syrian civil war.

Judge Isabelle Prevost-Desprez stated, “The sole purpose of the funding of a terrorist organisation was to keep the Syrian plant running for economic reasons.” This admission underscores the troubling ethical implications of corporate decisions made in conflict zones.

Lafarge’s plant in Jalabiya began operations in 2010, just months before the outbreak of the Syrian uprising in early 2011. As the civil war escalated, the company acknowledged that it paid nearly 13 million euros to middlemen to maintain its factory’s operations amidst the chaos.

In a separate case in the United States, Lafarge faced similar allegations and paid $778 million in forfeiture and fines, further complicating its legal troubles. The company has also been under investigation in France for alleged complicity in crimes against humanity.

Former employees have expressed their outrage, stating, “Lafarge was aware of what was happening to us – the checkpoints, the threats, the daily fear – but chose to risk the lives of its employees for profit.” This sentiment reflects a growing concern over corporate accountability in conflict zones.

Lafarge has acknowledged the court’s findings regarding conduct that occurred over a decade ago, emphasizing its commitment to addressing these legacy issues responsibly. The company stated, “The decision is an important milestone in Lafarge SA’s actions to address this legacy matter responsibly.”