Fakoyejo OlalekanLafarge Cement has admitted to paying terrorists groups in Syria to aid continuation of the firm’s operation in the country, leading to the United States justice department penalising the company with a fine of $778 million.
U.S attorney, Breon Peace, said Lafarge, the French subsidiary of the cement company, made a deal with the devil, disclosing that between 2013 and 2014, Lafarge paid $5.92 million to Islamic State and al Nusra Front through intermediaries.
It was gathered that ISIS and ANF received monthly “donations” from Lafarge to allow employees, customers and suppliers to cross checkpoints around Jalabiyeh region of northern Syrian where its cement plant is located.
Also, ISIS-controlled suppliers were also paid by executives at the company for the purchase of materials needed for their cement plant.
The payment to terrorist groups came before Lafarge merged with Swiss firm, Holcim, in 2015. And the US exonerated the latter without mentioning its name, but stated that Holcim failed to do due diligence before the acquisition.
Holcim distanced its firm from the payment to terrorists, stating it has never operated in Syria, and assured that the decision by Lafarge’s French operation is contrary with everything that Holcim stands for.
Due to the payment to the terrorists, Lafarge made $70 million revenue from the cement plant in question, “Lafarge made a deal with the devil. This conduct by a western corporation was appalling and has no precedent or justification.” Peace said.
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It was gathered that the Islamic State sold the cement plant for $3.21 million after Lafarge quit the factory in September 2014, and the terrorist group took possession of the plant.
Lafarge hid the deal with the terrorist group from Holcim, but Lafarge chairman, Magali Anderson, said former executives “knowingly and willfully agreed to participate in a conspiracy to make and authorise payments intended for the benefit of various armed groups in Syria.” from August 2013 until November 2014.
With French authorities already arresting the unnamed executives involved in the deal, Lafarge admitted to the payout to the terrorists, and this led to the $778 million, which consist of forfeiture and fines.
“Lafarge SA and LCS have accepted responsibility for the actions of the individual executives involved, whose behaviour was in flagrant violation of Lafarge’s code of conduct.” Lafarge SA said. The firm opined that it “deeply regret that this conduct occurred and have worked with the U.S. department of justice to resolve this matter.”
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