Islamic Theology
Encik Jahal gave an expensive new car worth
RM 174,000 to Encik Lahab for facilitating the approval of a construction
project in favour of Encik. Jahal’s company. Encik Jahal is a contractor while Encik
Lahab is a officer in the department that awarded the contract. After that, Encik Jahal also gave a gratification of RM 5,000 to a Bank Officer XXX with the
intention to have his application for a approval to be processed speedily.
As you read, think about this: Are any of the
theological issues ?
Explain FIVE (5)
roles and contributions of the Islamic Theology in the development of the Mankind
in Islamic banking.
All the best and salam ramadhan al mubarak.
Answer by Mohd Marzuki Bin Ismail:
ReplyDeleteThe theological issues arise here are Encik Jahal already involved in the bribery practices which is haram in Islam. The followings are the Quranic verses and hadith about bribery practices:
i)''And do not consume one another's wealth unjustly or send it [in bribery] to the rulers in order that [they might aid] you [to] consume a portion of the wealth of the people in sin, while you know [it is unlawful]'' ( Al Quran Chapter 2, Verse 188);
ii) Abdullah bin `Amr (may Allah be pleased with him) narrated that the Messenger of Allah said: “The curse of Allah is upon the one who offers a bribe and the one who takes it.” (Ahamd, Ibn Majah and authenticated by Al-Albani)
En Lahab, the government officer also equally guilty as En Jahal as he agreed to receive the bribe. The bank officer also equally guilty as En jahal as he agreed to receive bribe as motivation to process the En Jahal’s application faster.
En Jahal due to its conduct have breach the ultimate objective of the Islamic Economy that is to achieve Al-Falah (to achieve the success in this world and in the hereafter). Both En Lahab, the government officer and the bank officer have acquired the assets/property/wealth using unlawful means.
FIVE (5) roles and contributions of the Islamic Theology in the development of the Mankind in Islamic banking.
i)Avoiding transactions involving Riba’
Transaction involving riba’ is forbidden in Islam. Thus, Islamic Banking have come out with financing products that avoid the riba’ elements to customer of Islamic Bank.
ii)Promotes financial justice
It is widely known that the Western or conventional financing looks forward to profit through interest payments and makes the beneficiary completely liable for any risk. Contrary to this, Islamic financing is fairer as its paves way for the sharing of profit/loss and the risk involved in a proportional manner between the lender and the beneficiary.
iii) Stability in Investment
Islamic finance only deals with investment that met the Shariah principles and avoid investment with characteristics such as gharar and speculative. Thus, the investment chosen by Islamic finance is more stable and secured. Investor will feel safe and secure as they know that Islamic finance avoid investment in companies that involved in gharar and speculative activities that pose more risk.
iv)Promote economic development among the ummah
One of the objective of Islamic finance is to create profit and promote economic growth among the ummah. Thus, Islamic finance through its investment activities can accelerate to development of economic of the ummah by investing in economic sector that have potential growth and success.
v)Promote risk-sharing
Conventional banking is known to let the borrower face the business risk burden alone. Islamic finance is fairer as it also shares the risk of doing business with the customer. The risk-sharing scheme in Islamic finance is better from the conventional system as it the Islamic finance institution not only share profit if the venture is fruitful but also share the losses should the venture didn’t successful.
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DeleteReferring to the short case study, it is a clear indication of occurrence of bribery or رشوة in both transactions between Encik Jahal and Encik Lahab; and Encik Jahal and the Bank Officer. Bribery or corruption may be defined as the act of giving or receiving of any gratification or reward in the form of cash or in-kind of high value for performing a task in relation to his/her job description. Both cases gave perfect examples of act of gratification that commonly happen especially in Malaysia which are strongly Prohibited [Haram] both in Shariah and Common Laws.
ReplyDeleteThe two main sources of shariah in Islam i.e Al-Quran and Hadith have lay several dalils or postulates as in:
i) Surah Al-Baqarah verse 188
''And do not consume one another's wealth unjustly or send it [in bribery] to the rulers in order that [they might aid] you [to] consume a portion of the wealth of the people in sin, while you know [it is unlawful]''
ii) Surah An-Nisaa verse 58
''Verily! Allah commands that you should render back the trusts to those, to whom they are due; and that when you judge between men, you judge with justice. Verily, how excellent is the teaching which He (Allah) gives you! Truly, Allah is Ever All-Hearer, All-Seer.''
iii) Abdullah ibn `Umar (may Allah be pleased with him) narrated
I heard Allah’s Messenger (peace and blessings be upon him) saying:
Every one of you is a guardian, and responsible for what is in his custody. The ruler is a guardian of his subjects and responsible for them; a husband is a guardian of his family and is responsible for it; a lady is a guardian of her husband’s house and is responsible for it, and a servant is a guardian of his master’s property and is responsible for it.”
iv) Abu Dharr (may Allah be pleased with him) narrated:
I said to the Prophet (peace and blessings be upon him): O Messenger of Allah, will you not appoint me to a public office? He stroked my shoulder with his hand and said:
“Abu Dharr, you are weak and authority is a trust. And on the Day of Judgment it is a cause of humiliation and regret except for one who fulfils its obligations and (properly) discharges the duties.”(Muslim)
The ultimate objective of Islamic Economics is to achieve al falah in all human activities and decision making i.e to achieve the success in this world and in the hereafter. Both incidents in the case study have breach these basic principle of Islamic Economics
For the second part of the question about roles and contributions of the Islamic Theology in the development of the Mankind in Islamic banking.
Muslims believe that the Qur’an is the literal word of God (Arabic Allah) and the culmination of God’s revelation to mankind as revealed to Muhammad, the final prophet of humanity, over a period of twenty-three years through the angel Jibril.
Ranking second to the Qur’an are the Hadith. The Hadith record the teachings, rulings, and actions of Muhammad as recounted by his early associates. Muslims believe that the Hadith are inspired by God, and thus are to be obeyed. Unlike the Qur’an, the Hadith enjoy a diversity of sources and divergence of readings.
In addition to the Qur’an and the Hadith, we also turn to the works of noted scholars of Islam, whether Muslim or non-Muslim, as well as works popularly promoted by Islamic organizations.
There are strict rules applying to finance under Islamic law. In order to conform with Islamic rules and norms, five religious features, which are well documented in the literatures as follows:
(i) riba is prohibited in all transactions;
(ii) business and investment are undertaken on the basis of halal (legal, permitted) activities;
(iii) maysir (gambling, speculation) is prohibited and transactions should be free from gharar (unreasonable uncertainty);
(iv) zakat is to be paid by the bank to benefit society;
(v) all activities should be in line with Islamic principles, with a special shariah board to supervise and advise the bank on the proprieties of transactions.
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DeleteIn the above issue, En Jahal is not performing the good act as he given the bribe to the construction project and Bank officer. In other word, all the person involve in this issue was abuse the power given to them. As a human being, we are the servant of Allah. Thus we should be granted and trusted the used of ownership that already given by Allah. This is related with Surah Taaha: 20;6 “He’s the one who own the bounties whatever on this earth and in the outerspace (sky) or in between or down beneath the wet earth,” for the welfare and justice of the society.
ReplyDeleteThe roles and contributions of Islamic Theology in the development of the Mankind in Islamic banking can be found in the details as below;
1- Sanctity of contract: To ensure the contract or any transaction comply with Shariah, the counter parties should satisfy and confirm whether the contract already meet Shariah compliance or not. The Islamic bank transaction must be valid and should not include any invalid components in the contract
2- Risk sharing: It promotes risk sharing between provider of capital (investor) and the user of funds (entrepreneur).
3- No Riba/interest: The Islamic banks have no provision to charge any extra money from the defaulters. In order words it known as riba’ or interest. Only small amount of compensation and these proceeds is given to charity. Rebates are given for early settlement at the Bank's discretion.
4- Economic purpose/activity: Every Islamic banking transaction has certain economic purpose/activity and must be based on a Shariah approved underlying transaction.
5- Fairness: Islamic banking inculcates fairness through its operations. Transactions based on dubious terms and conditions cannot become part of Islamic banking. All the terms and conditions embedded in the transactions are properly disclosed in the contract/agreement.
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