Rabat – French cement producer Lafarge admitted to paying ISIS and other extremist groups to maintain its plant’s activities in Syria.
US federal prosecutors ruled that Lafarge, which also owns a subsidiary in Morocco, was paying the extremist groups, while they controlled the area surrounding its cement factory in Jalabiya Syria.
Deputy Attorney General Lisa O. Monaco said that the crimes to which the company and its subsidiary pleaded guilty are “a vivid reminder of how corporate crime can intersect with national security.”
The deputy attorney general had accused the defendants of partnering with ISIS and the Al Nusra Front (ANF) to protect its profits and increase its market share.
“This case sends the clear message to all companies; but especially those operating in high-risk environments, to invest in robust compliance programs, pay vigilant attention to national security compliance risks, and conduct careful due diligence in mergers and acquisitions,” the deputy attorney added.
The French company negotiated deals to pay armed factions in the Syrian civil war to protect its employees after the conflict started in 2011.
From 2013 to 2014, the company paid ISIS and the Al Nusra Front more than $5.9 million. In addition, Lafarge and its subsidiary in Syria also paid $1.11 million to third-party intermediaries for negotiating with and making payments to, ISIS and ANF on the company’s behalf.
US Attorney Breon Peace said the company made a “deal with the devil.” In 2015, Lafarge became a division of Swiss-based Holcim.
Assistant Attorney General Matthew Olsen from the Justice Department’s National Security Division said there is “no justification” for an international company to authorize payments to extremist organizations.
The US Justice Department said the company admitted to their crime, emphasizing that this is an unprecedented case where a corporation has been charged with providing material support and resources to foreign extremist groups.
“This unprecedented charge and resolution reflect the extraordinary crimes committed and demonstrates that corporations that take action in contravention of our national security interests in violation of the law will be held to account,” the Justice Department warned.
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