Financial costs and cost of sales weigh on BUA Cement’s earnings in the third quarter of 2022

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A multinational cement company, Lafarge has reached a $780 million criminal plea deal with the United States Department of Justice for providing material support to the feared group, ISIS.

Lafarge admitted to having paid a sum of 10.24 million dollars to the Islamic State between August 2013 and October 2014.

The money was donated by the company to the Islamic State (ISIS) terrorist group to keep its cement plant operating in Syria.

Northern Syria, where the company’s cement factory was located, was in the hands of the terrorist group.

Similarly, evidence presented by the Department of Justice showed that Lafarge had extensive relationships with a number of terrorist groups responsible for the deaths of thousands of people.

According to a statement of facts released Tuesday in federal court in Brooklyn, executives of Lafarge and its Syrian subsidiary worked with Syrian-based intermediaries to pay “numerous armed factions”, including the Islamic State and the Front al- Nusra, who controlled the area. around the cement plant.

The payments included periodic “security payments” to armed groups and the purchase of raw materials from suppliers controlled by the Islamic State.

The evidence also showed that the company entered into a formula revenue agreement that ceded a percentage of the profits from the cement sold to the terrorist group.

In return, the Islamic State allowed access to raw materials from its territory and allowed Lafarge employees, suppliers and distributors to pass safely through checkpoints manned by the Islamic State and the Nusra Front.

U.S. Attorney Breon Peace said “Lafarge has admitted and taken responsibility for its astounding crime.”

“Never before has a company been accused of providing material support and resources to foreign terrorist organizations,” he added.

Peace further noted that Lafarge not only traded revenue for permission to operate its cement plant, but leveraged its relationship with ISIS to gain economic advantage, seeking help from ISIS. to harm competition from Lafarge in exchange for a reduction in sales revenue.

king of investors learned that a $780 million fine is one of the heaviest a private company has ever paid for providing material support to a terrorist organization.

While commenting on the plea bargain, Lafarge chief executive Magali Anderson, who was also in court, said everyone involved in the conduct was no longer with the company.

He also noted that Lafarge “accepts responsibility for the actions of the individual executives involved, whose behavior was in clear violation of Lafarge’s Code of Conduct.”

The federal criminal law of the United States (Code 2339) prohibits people or companies from harboring or collaborating with people they know to be terrorists.

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