A French court on Monday found cement group Lafarge guilty of financing terrorism through its Syrian subsidiary, ordering the company to pay fines and sentencing several former executives to prison.
The Paris court ruled that the company paid protection money directly to ISIL (ISIS) and other armed groups, breaching European sanctions to maintain operations in northern Syria during the 2013-2014 civil war.
Judges ordered Lafarge to pay a fine of 1.12 million euros ($1.32m) and the confiscation of 30 million euros ($35.1m) worth of its assets. An additional fine was levied for the company's disregard for international sanctions.
Former CEO Bruno Lafont received a six-year prison sentence, while former deputy managing director Christian Herrault was sentenced to five years. Eight other former employees were found guilty of financing terrorist organizations, with sentences ranging from one to seven years.
Payments for profit
Presiding judge Isabelle Prevost-Desprez stated that the payments helped strengthen groups responsible for deadly attacks in Syria and beyond.
“It is clear to the court that the sole purpose of the funding of a terrorist organisation was to keep the Syrian plant running for economic reasons,” Prevost-Desprez said. She added that the payments functioned as a “genuine commercial partnership” with ISIL.
The court found that Lafarge paid a total of 5.59 million euros ($6.55m) to armed groups, including ISIL and the al-Nusra Front, both of which were designated terrorist entities by the EU between 2013 and late 2014.
Records show the company paid more than 800,000 euros ($937,000) to secure safe passage for employees crossing the Euphrates River. The company also used 1.6 million euros ($1.87m) to purchase materials from quarries under ISIL control.
The French national counter-terrorism prosecutor’s office (PNAT) argued during closing statements that the company funded these organizations with “a single aim: profit.”
Lafarge, which is now part of the Swiss conglomerate Holcim, issued a statement acknowledging the court's finding. The company described the ruling as a “legacy matter” involving conduct from over a decade ago that violated its Code of Conduct.
This ruling follows a 2022 conviction against the company for crimes against humanity. In a separate US case, Lafarge previously agreed to pay $778m in fines and forfeitures after admitting its Syrian subsidiary paid $6m to ISIL and al-Nusra Front.
