KUALA LUMPUR: Hibah (profit) distributed by Tabung Haji (TH) during deficit years, particularly between 2014 and 2020, legally belonged to depositors, the Federal Territories Mufti Department (JMWP) clarifies.
The department said the money received by depositors was not considered unlawful or syubhah (doubtful) wealth that had to be returned, as it was given under a hibah contract whose conditions for transfer had been fulfilled.
"The haj performed by pilgrims who used hibah funds during the period was valid and was not affected," the department said in an article published Sunday (Aug 16) in the 'Tinta Mufti' section of the department’s website.
The article was published to provide clarification from the perspective of Fiqh Muamalat (the knowledge of Syariah rulings related to business and financial dealings), following the release of the Royal Commission of Inquiry (RCI) report on TH's management and operations between 2014 and 2020, which raised doubts among depositors over the status of the hibah they received.
The department said that during the period, the contract between depositors and TH was based on Wadi'ah Yad Dhamanah (guaranteed safekeeping), under which TH was considered to have borrowed depositors' money for investment and other purposes.
"Therefore, TH could not guarantee any profit. Instead, any returns given to depositors were voluntary hibah. Once the declared hibah was credited to a depositor's account, it was considered to have undergone qabd, meaning the transfer was completed and the funds legally belonged to the depositor.
"Failure by the management to comply with accounting standards or breaches of the law do not invalidate the hibah contract under Islamic law," the department said.
It added that issues involving account mismanagement, breaches of the law and creative accounting were the responsibility of the management at the time, not depositors or members of the public who were unaware of TH's actual financial position.
"In situations involving shortcomings in completed past transactions that have been widely carried out, Syariah law recognises the validation of those transactions and the removal of hardship as accepted principles to safeguard the rights of the parties and prevent greater harm," the article said.
Meanwhile, the department described TH's move to a Wakalah contract (an Islamic agency agreement) in December 2019 as a highly appropriate step, with the institution acting as an investment agent and returns distributed based on actual net investment profits rather than voluntary hibah.
"As such, if TH records no profits or incurs a deficit in the future, it will not be able to distribute any returns. This helps prevent imprudent practices, strengthen financial prudence and ensure greater transparency," it said.
The department also warned that the integrity scandal involving TH should serve as a turning point for comprehensive reforms in the management of Islamic institutions in Malaysia. - Bernama
