LafargeHolcim has released details of an internal investigation into the conduct of its employees running the Jalabiya cement works up to 2014.
The investigation was launched in response to allegations in Le Monde, which stated that the firm had entered into deals with armed groups including Islamic State in order to protect its staff and business interests.
The results of the internal inquiry conclude that "the local company provided funds to third parties to work out arrangements with a number of these armed groups, including sanctioned parties, in order to maintain operations and ensure safe passage of employees and supplies to and from the plant."
However, it also makes it clear that it did not make payments directly to the armed groups themselves, nor is the company capable of ascertaining the ultimate beneficiaries of the payments it made.
LafargeHolcim goes on to describe the payments as 'unacceptable', adding "those responsible for the Syria operations appear to have acted in a manner they believed was in the best interests of the company and its employees. However, the investigation revealed significant errors in judgment that are inconsistent with the applicable code of conduct."
In response to the review, LafargeHolcim will establish an ethics, integrity and risk committee and improve its risk assessment processes.
The company states that the revelations that it provided payments to third parties that were then directed to armed groups will have no material financial impact on the LafargeHolcim Group. However, it does note reports that criminal complaints have been filed against it in France, but due to the secret nature of such investigations it is not possible to know whether this is the case.
