Lafarge, a prominent French cement producer, has been found guilty in a Paris court of providing millions of dollars in illicit payments to jihadist organizations, notably the group identifying as the Islamic State (IS). These payments were made to ensure the continued operation of its business in Syria amidst the ongoing civil war.
The conviction extends to eight former Lafarge employees, who were also found guilty of financing terrorism. Among them is Bruno Lafont, the former CEO, who received a six-year prison sentence on Monday.
Financial Transactions with Militant Groups
The court determined that between 2013 and 2014, Lafarge disbursed approximately $6.5 million (equivalent to €5.59 million or £4.83 million) to designated groups. The stated objective of these payments was to maintain the functionality of its plant situated in northern Syria.
Presiding Judge Isabelle Prevost-Desprez highlighted that such financial arrangements facilitated the control of Syria’s natural resources by proscribed organizations. This, in turn, enabled them to fund attacks that extended across the Middle East and into Europe.
The court concluded that “the sole purpose of the funding of a terrorist organisation was to keep the Syrian plant running for economic reasons.” Judge Prevost-Desprez further elaborated, “Payments to terrorist entities enabled Lafarge to continue its operations.” She characterized these transactions as constituting “a genuine commercial partnership with IS.”
Operational Context and Payment Details
The Lafarge factory, located in Jalabiya in northern Syria, was acquired in 2008 for $680 million. Operations commenced in 2010, mere months before the outbreak of the civil war in 2011.
According to prosecutors, Lafarge personnel were housed in the nearby town of Manbij, necessitating travel across the Euphrates River to reach the plant. The period of these payments spanned from 2013 until September 2014. Specific disbursements included €800,000 designated for securing safe passage and €1.6 million for the procurement of raw materials from quarries under IS control.
Further details from the court indicated that the Nusra Front, an organization affiliated with al-Qaeda and officially proscribed by the EU and other entities, was also among the recipients of Lafarge’s payments.
Sentences and Defense Arguments
In addition to Bruno Lafont’s sentence, former deputy managing director Christian Herrault was handed a five-year prison term. Firas Tlass, a Syrian former employee responsible for making the payments to the jihadist groups, received a seven-year jail sentence in absentia.
Herrault’s defense centered on the argument that the decision to keep the factory operational was motivated by concern for the welfare of local staff. He stated, “We could have washed our hands of it and walked away, but what would have happened to the factory’s employees?”
Company Fines and Related Investigations
Lafarge, now integrated into the Swiss conglomerate Holcim, was subjected to a fine exceeding €1 million (approximately $1.3 million). The company has yet to issue a formal statement regarding these developments.
A separate investigation examining potential complicity in crimes against humanity is currently underway. This case marks a significant legal precedent in France, representing the first instance of a company being tried for financing terrorism.
This conviction follows a 2022 legal proceeding in the United States, where the firm acknowledged its support for proscribed groups and agreed to a penalty of $777.8 million (or £687.2 million) for payments made to maintain its factory’s operations.
Syrian Civil War Context
The Syrian civil war commenced in March 2011, stemming from widespread opposition to the government’s forceful suppression of anti-regime protests led by President Bashar al-Assad.
IS jihadists gained control of substantial territories across Syria and neighboring Iraq in 2014. During this period, they proclaimed a trans-border “caliphate” and implemented their interpretation of Islamic law, characterized by brutal enforcement.