In a landmark ruling, a French court has imposed severe penalties on the cement giant Lafarge and its former chief executive for financing terrorism to sustain business operations in Syria during the civil war. Bruno Lafont, the former CEO, has been sentenced to six years in prison, with the judge ordering immediate incarceration, while the company faces a fine exceeding €1 million (£870,000).
Details of the Terrorism Financing Case
The Paris court found that Lafarge, now part of the Swiss conglomerate Holcim, paid nearly €5.6 million through its subsidiary Lafarge Cement Syria (LCS) to terror groups, including Islamic State and al-Qaida affiliate Jabhat al-Nusra, from 2013 to 2014. These payments were made to ensure the continued operation of a cement plant in northern Syria, facilitating access to raw materials and safe passage for employees and trucks.
Judicial Condemnation and Corporate Accountability
Presiding judge Isabelle Prevost-Desprez condemned Lafarge's actions, stating that the financing method was essential in enabling terrorist organisations to control Syria's natural resources and fund acts of terrorism within the region and abroad, particularly in Europe. She described the relationship as a "genuine commercial partnership with IS", highlighting the extreme gravity of the offences.
This ruling follows a 2022 case in the United States where Lafarge pleaded guilty to conspiring to provide material support to terrorist organisations, resulting in a $778 million (£580 million) fine—the first instance of a company facing such a charge. The French national counter-terrorism prosecutor's office emphasised that Lafarge's motive was solely profit-driven.
Impact on Syrian Employees and Ongoing Investigations
Former Syrian employees of Lafarge testified about daily fears, including bombings, kidnappings, and threats at checkpoints, accusing the company of prioritising profit over their safety. Despite the verdict, these employees are still awaiting compensation. Human rights organisations, such as Sherpa and the European Center for Constitutional and Human Rights, hailed the ruling as a major step in corporate accountability but noted the unresolved issue of victim compensation.
Lafarge is also under investigation in France for alleged complicity in crimes against humanity, adding to the legal scrutiny. Holcim, which acquired Lafarge in 2015, has stated it had no knowledge of the Syria dealings.
Background and Broader Implications
Lafarge completed a $680 million factory in Jalabiya in 2010, just before Syria's civil war erupted in 2011. While other multinationals exited Syria in 2012, Lafarge remained, evacuating only expatriate staff until Islamic State seized the factory in 2014. The case underscores the ethical dilemmas and legal risks faced by corporations operating in conflict zones, setting a precedent for future accountability in international business practices.
