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How Lafarge Cement is sponsoring ISIS terrorist group exposed

How Lafarge Cement is sponsoring ISIS terrorist group exposed
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Facts have now emerged about how Lafarge Cement has been sponsoring dangerous terrorist groups, including Islamic State of Iraq and Syria (ISIS), ENigeria Newspaper reports.

Lafarge, a French cement manufacturer, admitted in a U.S. court on Tuesday to having paid terrorist organizations, including the Islamic State, in order to continue doing business in Syria.

The admission in federal court in Brooklyn marked the first time a business admitted guilt in the US to allegations of giving material support to a terrorist group especially those as dangerous as ISIS. As part of the plea agreement, Lafarge Cement, which joined Swiss-listed Holcim (HOLN.S) in 2015, agreed to pay $778 million in forfeiture and penalty.

U.S. prosecutors alleged that between 2013 and 2014, Lafarge and its Syrian subsidiary Lafarge Cement Syria paid the Islamic State and al Nusra Front the equivalent of roughly $5.92 million through middlemen to permit personnel, clients, and suppliers to pass through checkpoints after civil war broke out in Syria.

As a result, the business was able to generate $70 million in sales revenue from a plant it ran in northern Syria, according to the prosecution.

How Lafarge Cement is sponsoring ISIS terrorist group exposed

Lafarge-Cement-and-ISIS

“Lafarge made a deal with the devil,” Breon Peace, the top federal prosecutor in Brooklyn, told reporters following the guilty plea. “This conduct by a Western corporation was appalling and has no precedent or justification.”

Lafarge eventually evacuated the cement plant in September 2014, U.S. prosecutors said. At that point, Islamic State took possession of the remaining cement and sold it for the equivalent of $3.21 million, prosecutors said.

Lafarge Chair Magali Anderson said in court on Tuesday that from August 2013 until November 2014 former executives of the company “knowingly and willfully agreed to participate in a conspiracy to make and authorize payments intended for the benefit of various armed groups in Syria.”

In a statement, Holcim noted that none of the conduct involved Holcim, “which has never operated in Syria, or any Lafarge operations or employees in the United States, and it is in stark contrast with everything that Holcim stands for.”

DUE DILIGENCE

Holcim said that former Lafarge executives involved in the conduct concealed it from Holcim, as well as from external auditors.

Without naming Holcim, U.S. Deputy Attorney General Lisa Monaco told reporters that the company that acquired Lafarge did not perform due diligence of the Syria operations.

No Lafarge executives were charged in the United States. Monaco said that French authorities have arrested some of the executives involved but did not provide names. U.S. court records refer to six unnamed Lafarge executives.

Anderson said in court that the individuals responsible had not been with the company since at least 2017.

Eric Olsen, the company’s first chief executive following the merger, left the company in 2017 after the firm admitted to paying armed groups in Syria. Olsen said at the time that he was not involved in or aware of the payments.

Paris-based human rights group Sherpa, which filed a complaint against Lafarge in France that prompted a criminal investigation into whether the company was complicit in crimes against humanity, criticized the plea agreement on Tuesday.

The deal “impede(s) access to justice for victims and deprives them of a public trial,” said Anna Kiefer, Sherpa’s advocacy and litigation director.

Lafarge had denied charges that it was complicit in crimes against humanity. The French investigation, which concerns acts partially committed in France, is ongoing, a person close to France’s anti-terrorism prosecution office, told Reuters on Tuesday.

The SIX Swiss Exchange suspended trading in Holcim shares before the news. Shares rose as much as 3.2% when trading resumed.

Reporting by Luc Cohen in New York and Karen Freifeld; Additional reporting by John Revill in Zurich and Tassilo Hummel in Paris Editing by Noeleen Walder and Lisa Shumaker

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