Business Day

Politician­s blast LafargeHol­cim’s IS link

- Phil Serafino and Angeline Benoit Paris

LafargeHol­cim, the world’s biggest cement maker, found itself in the cross-hairs of two of France’s presidenti­al candidates at Tuesday’s debate, showing how the resurgence in populism is dragging companies into the political arena.

Jean-Luc Melenchon, a Communist-backed candidate, running fourth in opinion polls, attacked the Switzerlan­d-based business for paying Islamic State (IS) to keep a factory open in Syria amid a civil war. Nathalie Arthaud of the left-wing Workers Party said LafargeHol­cim was an example of what was wrong with capitalism.

The debate marks the second time in a week that the company, formed from the 2015 merger of France’s Lafarge and Switzerlan­d’s Holcim, has been targeted by politician­s.

The Paris city council voted

on March 28 to stop working with the firm because of the Syria payments and also due to its willingnes­s to supply material for the wall that US President Donald Trump plans to build along the Mexican border.

“Accomplice­s should be punished,” said Melenchon. “I find it very strange that the case of Lafarge, a global cement producer, which acknowledg­es having paid IS to continue producing its damned cement, hasn’t been mentioned.

“Well, this company should be seized by the state. We need to make an example of those who plot with the enemy.”

UNACCEPTAB­LE PAYMENTS

LafargeHol­cim said in March that an internal probe showed that Lafarge had paid money to armed groups to keep a plant operating in war-torn Syria, measures the company said were unacceptab­le and against its code of conduct. Funds were given to third parties who then made arrangemen­ts with a number of groups, including “sanctioned parties”, it said.

“We have shared a limited number of preliminar­y findings and conclusion­s that involve facts which are clearly not in line with who we are as a company today,” LafargeHol­cim said in response to questions, declining to comment directly on the debate. “At this point it would be imprudent to comment on any specific findings of the internal investigat­ion until it is completed in the coming weeks.”

The Paris vote does not affect constructi­on companies that have contracts with the council. It only applies to the city’s direct partnershi­ps with LafargeHol­cim. Paris will end a longstandi­ng arrangemen­t to take sand from the company for artificial beaches along the river Seine, which the company had provided free of charge.

The city had already decided it would replace sand with grass and plants in 2017, yet agreed to shun the company anyway.

LOOMING ELECTION

Tuesday’s debate included all 11 candidates who are running in the first round of the election, which takes place on April 23. If no candidate wins a majority, the top two finishers face off in a run-off on May 7.

Marine Le Pen of the antieuro, anti-immigrant National Front leads in the first round, but polls show her losing in the runoff to independen­t Emmanuel Macron or centre-right candidate Francois Fillon.

Arthaud, who had the support of 0.5% of likely voters, said: “It built the Atlantic wall under Petain and Hitler,” she said. “Now, we’ve all learned, it’s been doing business with IS, and now, it wants to build the wall between the US and Mexico.

“It’s clear that these large groups won’t be stopped by a change in regime or a new constituti­on.”

THE PARIS VOTE DOES NOT AFFECT CONSTRUCTI­ON COMPANIES THAT HAVE CONTRACTS WITH THE COUNCIL

 ?? Jean-Luc Melenchon ??
Jean-Luc Melenchon

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