Connect with us

Company News

Lafarge Plead Guilty to Paying Off ISIS, Fined $780 Million as Penalty

Lafarge has reached a $780 million criminal plea agreement with the United States Department of Justice for providing material support to the dreaded group, ISIS.



Lafarge Africa - Investors King

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

Lafarge admitted it paid a sum of $10.24 million to ISIS between August 2013 to October 2014. 

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

Northern Syria, where the company’s cement plant was located was held by the terrorist group. 

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

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

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

Evidence also showed that the company entered into a revenue agreement formula which ceeded a percentage of the profit from the cement sold to the terrorist group. 

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

The U.S. Attorney Breon Peace stated that “Lafarge has admitted and taken responsibility for its staggering crime,”. 

“Never before has a corporation been charged with providing material support and resources to foreign terrorist organizations,” he added.

Peace further noted that Lafarge did this not only exchange revenue for permission to operate its cement plant but leverage its relationship with ISIS for economic advantage, seeking ISIS’s assistance to hurt Lafarge’s competition in exchange for a cut of proceeds from sales.

Investors King learnt that a penalty of $780 million is one of the largest penalties a private corporation has ever paid for providing material support to a terrorist organization.

While commenting on the plea bargain, The chief executive of Lafarge, Magali Anderson who was also at the court stated that all those involved with the conduct are no longer with the company. 

He also noted that Lafarge “accepted responsibility for the actions of the individual executives involved, whose behaviour was in flagrant violation of Lafarge’s code of conduct.”

The United States Federal Criminal Law (Code 2339) prohibits people or businesses from harbouring or collaborating with people they know to be terrorists.

Continue Reading

Company News

Manufacturers Cut Spending on Alternative Energy Sources as Electricity Supply Improves



Manufacturing Sector - Investors King

Nigerian manufacturers reduced their spending on alternative energy sources by 21.25% to N60.4 billion in the first half of 2023, according to the Manufacturers Association of Nigeria (MAN).

This decline is attributed to the increased availability of electricity from the national grid, which improved to 11.3 hours per day, up from 10.2 hours in the same period of 2022.

The report also indicated a slight increase in daily power outages to 4.7 times from 4.4 times in H1 2022.

These improvements in grid electricity availability have positively impacted the manufacturing sector’s energy expenditure, leading to a significant drop from N76.7 billion spent in the second half of 2022.

However, the initial high expenditure on alternative energy sources was driven by skyrocketing diesel prices.

The cost of diesel had surged due to foreign exchange challenges and the implementation of a 7.5% Value Added Tax on Automotive Gas Oil (diesel).

Diesel prices in many states had risen to between N900 and N950 per liter, which threatened the production capacity of numerous manufacturing entities.

The Nigerian Textile Manufacturers Association expressed concerns about the potential closure of textile factories and job losses due to rising energy costs. Textile manufacturers, in particular, found it challenging to afford diesel at such prices.

The Chief Executive Officer of Coleman Technical Industries Limited also highlighted the increased production costs associated with higher diesel prices.

While the improvement in electricity supply is a positive development for manufacturers, the industry remains vigilant about energy costs and their impact on production.

Continue Reading

Company News

Dangote Group Subsidiaries Contribute N474 Billion in Taxes to Federal Government Over Three Years



Dangote Sugar - Investors King

In a significant testament to its commitment to corporate citizenship and financial responsibility, three subsidiaries of the Dangote Group have revealed that they paid a substantial total of N474 billion in taxes to the Federal Government over the past three years.

The disclosure was made by Hashem Ahmed, an official representing the multibillion-dollar conglomerate, during the opening ceremony of the 18th Abuja International Trade Fair, which focused on the theme ‘Sustainable financing and taxation as drivers of the new economy.’

The Dangote Group, led by its President Aliko Dangote, stands as not only the largest private-sector employer but also the country’s leading taxpayer. The remarkable N474 billion contribution was primarily made by Dangote Sugar, Dangote Cement, and Dangote Salt.

Also, the group has a longstanding history of extensive financial support, empowerment initiatives, corporate social responsibility programs, sponsorships, and philanthropic endeavors, amounting to several billions of naira.

Hashem Ahmed also expressed the group’s satisfaction with the Federal Government’s commitment to tax reform policies aimed at broadening the tax base and providing essential funding for infrastructure development in the country.

The Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, who spoke at the event, announced the government’s comprehensive plan to support small businesses and startups amid Nigeria’s economic challenges.

The plan includes a N75 billion investment by March 2024 to bolster the manufacturing sector, grants for microbusinesses in every local government, and a N75 billion fund to support up to 100,000 startups and MSMEs at favorable interest rates repayable over 36 months.

The government has also initiated partnerships with tech giants like Microsoft and the African Development Bank, signaling a bright future for Nigeria’s economic growth and innovation.

Continue Reading

Merger and Acquisition

Dangote Industries Set to Revolutionize Agriculture Industry with Mega Merger, Creating Dangote Foods Plc



Dangote Industries Limited has unveiled plans for a merger that will give rise to a formidable entity known as Dangote Foods Plc.

This colossal conglomerate is poised to transform the agriculture industry and enhance food security across the nation.

The merger will combine three subsidiaries of Dangote Industries Limited, including Dangote Sugar Refinery, Dangote Salt, and Dangote Rice, resulting in a diversely profitable mega-company.

The fusion, scheduled for completion by the end of 2023 pending regulatory approvals, promises to yield significant benefits for all stakeholders, notably shareholders.

Dangote Sugar Refinery’s Group Managing Director and CEO, Mr. Ravindra Singhvi, highlighted the merger’s strategic importance, stating its potential to create substantial shareholder value.

The amalgamation will not only generate cost-saving synergies but also expand product offerings and revenue streams.

Dangote Foods Plc is set to become a powerhouse in the market, boasting a wide array of products, including sugar, salt, tomato, and rice, among others. This merger will facilitate broader distribution capabilities and increased operational efficiency through synergy.

The journey towards this monumental merger began when Dangote Sugar Refinery notified the Nigerian Exchange Limited of its intention to merge with NASCON Allied Industries Plc and Dangote Rice Limited, both subsidiaries of Dangote Industries Limited.

This move marks a pivotal moment in the corporate history of Nigeria, with Dangote Industries Limited reaffirming its commitment to driving growth, innovation, and food security for the nation.

As regulatory approvals progress, Dangote Foods Plc is poised to emerge as a prominent player in Nigeria’s agricultural landscape, ultimately paving the way for a brighter and more sustainable future for the country.

Continue Reading