Displaying items by tag: penalty

France: The Lafarge group and several former senior officials will stand trial in Paris from 4 November 2025, accused of historically financing terrorist organisations, including Islamic State (IS). The aim of the alleged payments was to maintain operations at a cement plant in Jalabiya, northern Syria. The defendants include former CEO Bruno Lafont, five former managers and two Syrian intermediaries. They face charges of financing a terrorist enterprise and, for some, breaching international financial sanctions.

Lafarge Cement Syria (LCS), the group’s Syrian subsidiary, is suspected of paying several million Euros between 2013 and 2014 to jihadi groups IS and Jabhat al-Nusra to secure raw materials and allow the movement of employees and goods. The €680m Jalabiya plant, completed in 2010, continued operating until IS took control in September 2014, two years after most other multinationals had left Syria.

An internal investigation in 2017 found ‘violations of Lafarge’s business code of conduct.’ Lafarge, which merged with Holcim in 2015, has said the events predated the merger.  In October 2022, Lafarge pleaded guilty in the US to paying IS and Jabhat al-Nusra nearly US$6m and agreed to pay a US$778m penalty.

Former CEO Lafont has denied knowledge of the payments. His lawyers argue that the US plea “is a blatant attack on the presumption of innocence” and aimed to “preserve the economic interests of a large group.”

So far, 241 civil parties have joined the case. “More than ten years after the events, the former Syrian employees will finally be able to testify about what they endured: the checkpoint crossings, the kidnappings and the constant threat hanging over their lives,” said Sherpa legal officer Anna Kiefer. Lafarge faces a fine of up to €1.125m for financing terrorism, while penalties for violating the embargo could reach ten times the value of the offence. A separate investigation into alleged complicity in crimes against humanity in Syria and Iraq remains ongoing.

Ghana: Cement manufacturers have failed to comply with a Cement Manufacturing Development Committee (CMDC) directive to declare ex-factory prices for 50kg cement bags by 23 May 2025, in line with the Ghana Standards Authority Legislative Instrument 2491, which mandates the reporting of prices every month.

CMDC chair Alex Dodoo confirmed on 27 May 2025 that no firm had complied and said the committee would hold an emergency meeting to consider sanctions. “The law is clear, and we will not hesitate to apply the necessary penalties,” he said.

Pakistan: The All Pakistan Cement Manufacturers Association (APCMA) has appealed to the Competition Appellate Tribunal to annul a US$22.6m penalty imposed by the Competition Commission of Pakistan (CCP) over alleged collusion and price fixing.

APCMA’s counsel argued that the sector operates competitively with price variation, and that the CCP failed to properly analyse the industry geography. He said a 2003 quota-sharing agreement had expired before the CCP ruling and challenged office raids as unfounded.

The tribunal has adjourned the case to 22 May 2025, when defence lawyers will present arguments. The CCP previously fined the APCMA and its member companies in 2009 after alleging market collusion.

US: Continental Cement Company will pay a US$74,440 civil penalty and spend at least US$282,000 to procure low-emission buses for a local school district as part of a settlement following alleged Clean Air Act violations. The replacement propane buses will reduce air pollution in areas impacted by excess emissions from Continental Cement’s operations.

According to the Environmental Protection Agency (EPA), it identified inadequate operation of leak detection systems during a December 2022 inspection, which are designed to notify the company of potential hazardous emissions. Without a functioning leak detection system, the facility would be unaware of whether pollutant filters are operating effectively to reduce emissions of particulate matter and other air pollutants.

Saudi Arabia: Sinoma Overseas Development completed start-up testing and hand-over of new grinding mills at Arabian Cement Company’s Rabigh cement on 21 February 2024. The supplier said that the delivery was in accordance with the terms of the original contract between its parent company, China National Building Material (CNBM), and the producer.

Sinoma Overseas Development attributed deviations from the project’s previously announced schedule to the need for discussions with CNBM about remaining project works, equipment operation plans, procurement schedules and acceptance tests. As provided for in the contract, the work will be subject to a 5% delay penalty.

Kenya: The Supreme Court of Kenya has ordered lenders Absa Bank and KCB Group to not seize Savannah Cement's assets or appoint administrators or receivers for it after the producer defaulted on its debts. The producer's debts include US$2.41m in interest and US$110,000 in penalties. The temporary block will stand until the court issues further directions. Business Daily News has reported that the court has ordered Savannah Cement to pay US$81,200 to Absa Bank by 28 December 2022.

Savannah Cement director Benson Sande Ndete alleged that lenders coerced the company into repaying US$40.6m-worth of debt. The law forbids interest payments greater than the principal sum of a loan.

Ndete said, "The firm is working to complete the funding of its Kitui clinker plant project, which will allow it to get all the funds necessary to clear the debts."