I found this while searching the net and had to put it in my blog, it is a transcript of a talk by Mufti Ebrahim Desai at the Launch of Shari'ah Compliant Business Campaign of Darul Ifta, Madrasah In'aamiyyah, Camperdown, South Africa.
Address - Salaam
Once again, I welcome each and everyone of you Ahlan wa sahlan to the Shari’ah Compliant Business Campaign of the Darul Ifta, Madrasah In’aamiyyah – Camperdown. May Allah Ta’ala accept this gathering and make this campaign a success, Aameen.
Before we proceed any further, it is important to understand, what is a campaign?
According to the Oxford Dictionary, a campaign means, 'a series of battles with one purpose.’ In the context of the Shari’ah Compliant Business Campaign, campaign would mean, a series of battles against those un-Islamic business practices in the business sector with the sole purpose of making those un-Islamic practices Shari’ah compliant.
When a person engages in a battle, he fights his enemy and his success depends upon his determination. The stronger the determination, the greater the success. Rasulullah (Sallallaahu Alayhi Wasallam) said, Niyyatul mu'min khayr min amalihi'The Niyyat (intention) of a believer is better than his actions.’
This is because intention is the stepping stone for a person to perform an act. In a battle, first and foremost, one is faced with the daunted task of identifying his enemy. The person must know who his enemy is in order to fight his enemy. Secondly, after identifying his enemy, he must have firm belief and conviction that his enemy is certainly his enemy. Thirdly, after having conviction in who his enemy is, he must immediately go in the opposite direction of his enemy and fight his enemy.
In the context of the Shari’ah Compliant Business Campaign, first and foremost, we must identify our enemies, 'The un-Islamic practices’ in the business sector.
Secondly, we must believe that each and every un-Islamic practice is our enemy and, thirdly, we should make a firm intention and determination to go in the opposite direction of those un-Islamic practices and address them.
In the remaining part of my speech, I propose to discuss some of the unIslamic practices in our business sector with the Shari’ah alternatives. The points of my speech have been circulated to you and I shall be discussing in that sequence. If time permits I shall discuss all the points, and if not, you may refer to the form circulated to you.
I now proceed with activity number 1 as enlisted in the copy.
Activity 1 - Cheating, Fraud and Lies
As a good omen to our Shari’ah Compliant Business Campaign, and in order to invoke the maximum blessings of Allah, I propose to commence with discussing the Shari’ah Compliant Business Campaign of Hadhrat Shu’ayb (Alayhis salaam) and that is reforming the business malpractice of cheating in weight and measure.
Allah Ta’ala says in the Qur’aan in Surah Hood (Aayat 84)
Allah sent Shu’ayb (Alayhis salaam) to the tribe of Madyan.
Shu’ayb (Alayhis salaam) addressed his nation,
'O my people, worship Allah. There is no one worthy of worship besides Allah. And do not decrease in scale and weight.’
(Presently) I see you are wealthy and prosperous.
I fear upon you an encompassing punishment (if you don’t bring faith and you cheat in weight and measure)
This was certainly a campaign of Shu’ayb (Alayhis salaam) because he faced a series of battles in reforming the business malpractice of cheating in weight and measure. Shu’ayb (Alayhis salaam) was known to perform abundant Nafl Salaat. In his campaign, they threw Salaat on his face saying:
'Oh Shu’ayb (Alayhis salaam)! Your Salaat is ordering us to leave the way of worship of our forefathers and do in our wealth and we wish to.’
Shu’ayb (Alayhis salaam) was determined but nothing would deter Shu’ayb (Alayhis salaam). He was committed and steadfast. When the tribe of Shu’ayb (Alayhis salaam) did not comply with the Shari’ah Compliant Business Campaign of Shu’ayb (Alayhis salaam). Allah Ta’ala punished and destroyed the entire nation.
Hadhrat Abdullah ibn Abbaas (Radhiallaahu Anhu) narrates that Rasulullah (Sallallaahu Alayhi Wasallam) said, 'Those people that cheat in weight and measure will suffer poverty.’
Poverty means to be poor and not having a supply of goods, but there is another angle of poverty and that is, there is a supply of goods but we are unable to obtain it due to the goods being very expensive or there are many restrictions in obtaining the goods. This is clearly visible in our economy. Goods are available but they are expensive or there are many restrictions in obtaining the goods. In order to get something, one has to pass so many boards and red tapes to obtain the goods. This is also poverty and one of the possible reasons for that may be cheating in weight and measure.
In our business practices, cheating in weight and measure takes place in many ways. One example is in re-packaging companies:
A person purchases 10 tons of 10 kg of anything, rice, flour, sugar, etc. He repacks it at 9kg and sell it at 10kg. On each pack, he cheats 1kg and on ten tons he cheats approximately 10,000 kg. If he gains only R1 on each kg, he will earn R10,000 for the extra kgs. That R10,000 will be absolutely Haram.
The alternative is to be truthful and honest. The power and Barakah of being truthful and honest is more powerful than the R10,000. A person may have the R10,000, but Allah will create unwanted avenues of expenses. Somebody in the family may get ill or the person meets an accident and immediately, there are new and unwanted avenues of expenses. The R10,000 and in fact more will be spent in the unwanted avenues of expenses. Remember, 'What comes the bad way, goes away the bad way’.
Activity 2 – To renege on agreements
Allah Ta’ala says in the Qur’aan,
'And fulfill your promises, verily, you will be questioned about your promises.’
If a person makes a promise and his intention is not to fulfil the promise, that is a major sin and a sign of Nifaaq (hypocrisy).
Rasulullah (Sallallaahu Alayhi Wasallam) said, 'There are three signs of a Munaafiq. He speaks lies, he breaks his promises and embezzles.’
One example of reneging on agreements in our business practice is in the Franchise and Partnership Agreement. The Franchisor and franchisee or partners in a partnership agree to be honest and transparent in reflecting the true sales of the business.
Remember, 'What comes the bad way, goes away the bad way.’
The franchisee or the active partner reneges on that and conceals the true sales of the business and that has a bearing on the commission or profit sharing. This is also a form of cheating. The income from the concealed amount will be Haraam for the franchisee or the Active Partner.
Before I proceed to the third activity of our business jargon, I want to share an incident on partnership. Once an old man and a young boy entered into a partnership of grains. There was an agreement that each one will take grains for personal use every alternate day. The old man should not take his share of grains and the young boy did not know that. Similarly, the young boy did not take his share of the grains and the old man did not know that. After some time, the young boy noticed that the heap of grains was the same and it did not decrease, so he approached the old man.
He said what Du’aa or Wazeefa you read that the heap of grains does not decrease. After insisting, the old man said, 'I should not take my share thinking I am old and you are young. You got a long way in life, so I decided to leave my share for you.’ The old man then said, but surely, the heap should have decreased at least half way if you took your share. What Du’aa or Wazeefa you make that the heap did not decrease. After insisting, the young boy said, 'I did not take my share and thought that you are old, you need the grains more than me. I am still young and can work. You don’t have that strength.’ Both partners were considerate and that brought Barakah.
Today, people request for Du’aas and Wazeefas for Barakah. Yet, there is no Barakah. How can there be Barakah if there is no consideration for the next person?
I may also advise, in agreements adopt one policy, 'Deal like strangers and live like brothers.’ Reduce agreements to writing, irrespective who the partner is, father, brother or son. That is more conducive to maintaining the good relationship. Often good relationships are ruined because of us not being clear in our dealings.
Activity 3 - Lies
Allah Ta’ala says in the noble Qur’aan:
'Beware, Allah’s curse is upon the liers’
'La’anah’ means '
(to be far from the mercy of Allah)
There are many examples of speaking lies in the business practice.
One example is presenting a false deposit slip.
1. A trader places an order to the company. The company requires advance payment before releasing the order. The trader presents a false deposit slip. The company thinks the trader has deposited the money in the bank and releases the goods only to realize that he has been tricked. Whatever sales the trader makes on the released order will be Haraam unless he pays the company. The sin of speaking lies still remains until the trader makes Tawbah.
2. Another example of lies is Abuse of the Export incentives. The government offers an incentive of a certain percentage for export. A person will register for export, he goes to the border, bribe the border officials to declare the goods having left the border. The trader then claims the incentive as well as sell the good at a cheaper price. The incentive received is Haraam.
In this practice, there are many evils – one is lies – Allah Ta’ala says, 'Behold, Allah’s curse is upon the liars.’ The second is bribery. Rasulullah (Sallallaahu Alayhi Wasallam) said, 'The giver of bribery and receiver of bribery, both are in the fire.’ The only alternative is to abstain from this practice and have firm belief that what is destined for me will come for me like 'Malakal mawt’ searches for a person destined to die.
It is our belief, 'wal haraam rizq’ (Haraam is also our Rizq). It does not mean we should adopt a Haraam way to earn rizq. This means that if one did not adopt a Haraam way to earn Rizq, he would still get it. One may wonder, how is that possible. If I don’t speak lies, I don’t give bribery, how will I earn the item. That is the weakness of our belief which we should strengthen. I want to share an incident of Hadhrat Ali (Radhiallaahu Anhu) with you.
Once a person requested Hadhrat Ali (Radhiallaahu Anhu) for a horse. He replied, 'I do not have a horse. When I get one will give it to you.’ When Hadhrat Ali (Radhiallaahu Anhu) got a horse, he sent his slave to deliver the horse to the person. On the way, the slave tied the horse and took a rest. The person who requested Hadhrat Ali (Radhiallaahu Anhu) for the horse and to whom the horse was being delivered, untied the horse and stole it. When Hadhrat Ali (Radhiallaahu Anhu) found out that the person for whom the horse was meant stole the horse, he said, 'How foolish is the person. Had he not stolen the horse, he would have still got the horse.’ We need to build our Yaqeen on this point.
Many people don’t regard speaking lies in business activities as a crime and sin. How can we expect the Barakah and mercy of Allah in our business when we are engaged in wholesale lies in our business?
Activity 4 – Interest
Everyone of us know that interest is expressly and explicitly Haraam. Imaam Abu Hanifa (RA) said the most severe warning given to Muslims in the Qur’aan is regarding interest. Punishment which will be meted out to Kuffaar will be meted out to Muslims engaged in interest.
Allah declares war against such a person. How can such a person survive. Allah granted us the dignity and honour of freedom, but we chose disgrace by being slaves. There are two forms of slavery, one is tangible slavery and the other intangible slavery. The tangible slavery is when the master owns a physical slave. An intangible slavery is not physical slavery but mental slavery. When a person takes an OD and pays interest, he has subjected himself to being the mental slave of his creditor. This is the worst form of slavery. Your physical self is not handed over but the most honourable part of yourself, your peace and brains is handed over to your creditor.
Apart from the conventional interest bearing transactions, one is Administration cost on OD. A person takes out an OD to service his clients of 30, 60 90 days and he charges them administration costs on the OD he had taken. According to Shari’ah, this is clear cut interest and Haraam. The solution is simple. Service your clients according to your financial ability. Do not feel ashamed to say a person 'No’ if you cannot service him. Changing the terminology does not make the deal permissible.
Fifth Activity – Consumer Credit
The general practice of consumer credit where the Consumer Credit Company pays the Trader out and the consumer then pays the CCC with an excess amount which is interest. The alternative for that is, for example, I purchase an item from you (the trader) for R300 and cannot pay in one instalment. The CCC will pay you the full R300 and I pay the CCC R100 in three instalments – interest free. However, the CCC and you (the trader) may also enter into an agreement for the CCC to promote your business for a fee. All this, to pay the consumer and service the trader may be done in one transaction.
This is similar to the Consumer Credit Card practise.
Activity Six – Insurance
All conventional insurance schemes have elements of interest and gambling in them and not permissible.
Businessmen engaged in export are required to insure the exported goods. The alternative to that is to opt for FOB (Freight on Board). If the importer is a non-Muslim, he will be responsible for the insurance. The Muslim businessman will be relieved from the burden of insurance.
Seventh Activity – Taking wealth by Coercion
Allah Ta’ala says in the Qur’aan,
'O you who believe! Do not eat one another’s wealth in an invalid way but that it be through with mutual happiness.’
One common practice of taking wealth by coercion is short exchanging.
Example: I owe you R10,000. You are desperate for the money and approach me. I offer you R5000 as full settlement. Out of desperation, you accept that and I gain R5,000. This practice of short exchanging is taking wealth by coercion and Haraam I should not expect to gain Barakah in that R5000
Activity Eight – Handling Charges
According to the Shari’ah – Iqaalah – dissolution in Transaction is encouraged.
Rasulullah (Sallallaahu Alayhi Wasallam) said,
'That person who dissolves a transaction with a person who regrets a purchase, Allah will dissolve the person’s sins on the day of Qiyaamat.’
To accept a dissolution in transaction is the right of the trader. It is also his prerogative to refuse, but if he makes Iqaalah, he will be rewarded. However, when the purchased item is returned, the trader must return the full amount to the purchaser. He cannot retain any amount as handling charges. As an alternative, the purchaser may repurchase the item with a higher price like any other consumer.
Activity Nine – Purchase on Credit
Before I explain this, I wish to explain a principle: When a person enters into a transaction and there is a possibility of a contention, that transaction is invalid. Allah Ta’ala says, 'And do not dispute.’ Any transaction that leads to dispute is prohibited.
One common practice is – a person sends an order note for purchase but the terms of payment is not stipulated. That is Haraam as it may lead to a dispute. Another branch of that is the cabbage lot in the CMT (Cut, Make and Trim) practice.
The clothing factory gives material to the tailor and order 100 garments. The tailor makes 110 garments and keeps 10 for himself. That may lead to a dispute between the factory and the tailor. Therefore, the agreement regarding the cabbage lot must also be specified.
Activity Ten – Violating Gazzetted Tariffs
In principle, a Muslim residing in a non-Muslim country is bound by the rules of the government if the rules are not un-Islamic.
Members of certain professions are bound by gazetted tariffs and according to Shari’ah, they must abide by that. Besides that violating the law of the country is a crime. If a person is convicted, it is an embarrassment. Rasulullah (Sallallaahu Alayhi Wasallam) said,
'It does not behove a believer to put himself in a disgraceful situation.’
The Darul Ifta is presently researching alternatives for Forward Cover, Asset Financing and Foreign Exchanges. Insha Allah, we shall inform the public of our research once we reach finality on these issues.
The Darul Ifta of Madrasah In'aamiyah Camperdown can be reached at http://www.alinaam.org.za/
