Cement Firm Lafarge Pleads Guilty in US for Supporting Terrorist Groups, to Pay N339.4bn Fine
- Cement company Lafarge will have to pay over N339bn for supporting terrorist group
- The company pleaded guilty after it was found that it provided material support and funds
- The news has raised concerns among investors and analysts to believe it will affect the company's stock performance on the Nigerian exchange
French cement company Lafarge has pleaded guilty in the United States to paying millions of dollars to the so-called Islamic State jihadist group in exchange for permission to keep open a plant in Syria.
The company pleaded guilty while charges were announced by federal prosecutors in New York City and by senior Justice Department leaders from Washington.
During the court proceeding, Lafarge agreed to penalties totaling roughly $778 million(N339.4bn), the Punch reports.
Source: AFP
Lafarge offenses
US Prosecutors accused Lafarge of turning a blind eye to the conduct of the jihadist militants, making payments to it in 2013 and 2014 as it occupied a broad swath of Syria -- and while some of its members were involved in torturing or beheading kidnapped Westerners.
PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!
Lafarge has apologized for its mistake saying:
"We deeply regretted the events and accepted responsibility for the individual executives involved".
How it happened
The company's actions occurred before it merged with Swiss company Holcim to form the world's largest cement maker.
The payments were designed to ensure the continued operations of his plant near the Turkish border in 2010 following a $680m investment.
US prosecutors said that Lafarge's Syrian subsidiary had paid Islamic State and another terror group, al Nusra Front, the equivalent of $5.92m to protect staff at the plant as the country's civil war intensified. Executives likened the arrangements to paying "taxes".
US speak on Lafarge
According to the BBC, this is not the first time Lafarge has pleaded guilty to conspiring to provide material support to a foreign terrorist organization.
Lafarge previously admitted to funneling money to Syrian armed groups in 2013 and 2014 to ensure employee safety and supply its plant.
Investors react in Nigeria
The news of Lafarge paying penalty and pleading guilty affected the stock price of Lafarge Africa Plc on the Nigerian Exchange Limited (NGX), n Tuesday, 18 October 2022.
The stock price of the cement-producing company on the NGX had remained flat since September 21, 2022, but depreciated by 2.13% on Tuesday.
It depreciated from N23.50 it started the day to N23.00 per share ThisDay reports.
It is, however, important to note that Lafarge Africa is a subsidiary that is wholly a Nigerian entity
Cement price to increase further as BUA names Dangote, Lafarge, others for high cost as they rake in N1.4trn
Meanwhile, in another report, cement price could increase further in the coming months as the Chairman and Chief Executive Officer of BUA Group, Abdul Samad Rabiu contemplates an upward review of cement prices.
Rabiu revealed this over the weekend to state house media after the group's team met with President Muhammadu Buhari, according to the Punch daily.
According to him, his company increased cement output and reduced prices by 10% per bag, but he was unable to gain the backing of other cement makers, who he blamed for the high cost of the product in the country.
Source: Legit.ng
