French Cement Giant Lafarge Faces Terrorism Funding Trial Over Islamic State Payments in Syria

France:

Cement conglomerate Lafarge faced trial in France on Tuesday over accusations of providing payments to the Islamic State group and other jihadist organizations as protection money to maintain its business operations in conflict-ridden Syria.

In a parallel case in the United States, the French company previously admitted guilt to conspiring to provide material support to US-designated "terrorist" organizations and accepted a $778-million penalty, marking the first instance where a corporation faced such charges.

In the French proceedings, Lafarge—now owned by Swiss conglomerate Holcim—stands accused of transferring millions of dollars during 2013 and 2014, through its subsidiary Lafarge Cement Syria (LCS), to jihadist groups and intermediaries to ensure continued operation of its northern Syria plant.

The alleged recipients include the Islamic State group (IS) and Jabhat al-Nusra, which was then Syria's Al-Qaeda affiliate.

The defendants comprise Lafarge, former chief executive Bruno Lafont, five previous operational and security staff members, and two Syrian intermediaries.

One Syrian defendant remains absent and is subject to an international arrest warrant.

At the trial's commencement, the defendants were charged with "funding terrorism" and violating international sanctions.

If convicted of "funding terrorism," Lafarge could face a fine up to $1.2 million, with potentially higher penalties if found guilty of sanctions violations.

Holcim, which acquired Lafarge in 2015, has maintained it had no awareness of the Syrian dealings.

Syrian employees were abandoned as foreign staff evacuated. Lafarge completed construction of a $680-million factory in Jalabiya in 2010, before Syria's civil conflict erupted in March the following year amid opposition to then-president Bashar al-Assad's violent suppression of anti-government demonstrations.

Foreign entities and powers eventually became involved, with IS jihadists gaining territory from 2013. By 2014, they had captured large portions of Syria and neighboring Iraq, declaring a so-called cross-border "caliphate."

They implemented severe interpretations of Islamic law, conducting public executions, amputating thieves' hands, and enslaving Yazidi women.

While other international companies departed Syria in 2012, Lafarge only evacuated its expatriate employees while keeping Syrian staff employed until September 2014, when IS took control of the factory.

During 2013 and 2014, LCS allegedly paid intermediaries to secure raw materials from IS and other groups and to ensure free movement for company vehicles and personnel.

Kurdish-led Syrian fighters, supported by US-led coalition airpower, eventually defeated IS and its proto-state in 2019.

A French investigation began in 2017 following media reports and two legal complaints filed in 2016—one from the finance ministry regarding alleged economic sanction violations and another from non-governmental organizations and 11 former LCS employees concerning alleged "funding of terrorism."

The Paris trial is expected to continue until December 16.

In the US case, the Justice Department stated that Lafarge sought IS assistance to eliminate competitors, operating what was effectively a "revenue sharing agreement" with them.

Lafont, who served as chief executive from 2007 until Lafarge's 2015 merger with Holcim, previously denounced the investigation as "biased."

A separate French investigation into Lafarge's alleged complicity with crimes against humanity remains ongoing.

In the United States, approximately 430 Americans of Yazidi descent, along with Nobel laureate Nadia Murad, have initiated a civil lawsuit accusing the company of supporting brutal attacks through conspiracy with IS.