Set up RCI to review Zakat system

Set up RCI to review Zakat system

RM1m tithe contribution to UMS (DE 24 Feb 2019 page 4). Lets see what this zakat (tithe) is really is when tithe (one tenth) is loosely associated to Islamic zakat.

What is said in the Bible – a holy book for all – about tithe is not the same as spelt out in the Koran.  Tithe is one tenth of income given back to society. But in the news item the said zakat would be distributed to four  categories, namely hardcore poor, asnaf, poor, mullaf (convert to Islam) and students.

So what is zakat really and hopefully this letter can help many who may be confused with the reality of that.

According to Wikipedia ---Zakat literally means "that which purifies".^[1] Zakat is considered a way to purify one's income and wealth from sometimes worldly, impure ways of acquisition.   According to Sachiko Murata and William Chittick, "Just as ablutions purify the body and salat purifies the soul (in Islam), so zakat purifies possessions and makes them pleasing to God."

Islamic scholars have traditionally interpreted this verse as identifying the following eight categories of Muslim causes to be the proper recipients of zakat.

1.     Those living without means of livelihood (Al-Fuqarā'), the poor

2.     Those who cannot meet their basic needs (Al-Masākīn), the needy

3.     To zakat collectors (Al-Āmilīyn 'Alihā)

4.     To persuade those sympathetic to or expected to convert to Islam (Al-Mu'allafatu Qulūbuhum), recent converts to Islam, and potential allies in the cause of Islam

5.     To free from slavery or servitude (Fir-Riqāb), slaves of Muslims who have or intend to free from their master by means of a kitabah contract

6.     Those who have incurred overwhelming debts while attempting to satisfy their basic needs (Al-Ghārimīn), debtors who in pursuit of a worthy goal incurred a debt^.

7.     Those fighting for a religious cause or a cause of God (Fī Sabīlillāh), or for Jihad in the way of Allah by means of pen, word, or sword, or for Islamic warriors who fight against the unbelievers but are not salaried soldiers.

8.     Wayfarers, stranded travellers (Ibnu Al-Sabīl), travellers who are traveling with a worthy goal but cannot reach their destination without financial assistance.

Zakat should not be given to one's own parents, grandparents, children, grandchildren, spouses or the descendants of the Prophet Muhammad.

In Malaysia like many other countries, Zakat is not really a tenth but of lesser amount for individual as varied annually.  It is mandatory for Muslms in Malaysia.

It may sound very good for the generosity of many people but is it a departure when such payments go through the income tax system ? If such payments go through the income tax system, isn’t it that it is converted to a public obligation?

So when zakat contributions are diverted to various public institutions like UMS and other similar recipients for administrating distribution as an off budget item, we need proper control over that.  Such annual amounts are substantial.

Zakat has been disclosed as follows: RM320,348,661.01 (2001) RM373,924,167 (2002) RM408,430,403.56 (2003)  RM473,269 ,093 (2004) RM 573,088,305 .74 (2005)  RM671,095,888.89 (2006) (Source : PPZ-MAIWP Annual Report 2006).  Zakat was established since 1991 and RM2.2 b was collected in 2013.  So how much is it in 2014 -2017?  Many companies not individuals also claim substantial zakat in their tax returns. 

UMS and other similar institutions also receive substantial amounts from many companies.

So would there be any good governance over the distribution of an off budget annual expenditure of such substantial sums of sort of public fund after gone through the income tax system likely deemed to be tax leakages without proper public accountability.  It is a general perception that students would be financial capable to sustain their tenure of study and where would hard core poor people or students arise to be eligible for receiving such funds annually?  So I hope it is not an excuse and an abuse to “reward” new Muslims amongst the students. Would such institutions now prepare annual reports for the distribution of zakat for good governance? 

Given the present financial scenario of national debts of over RM1 trillions and still counting, isn’t it more pressing that this item be reduced by whatever sources available rather than leave it to the next generation as a burden too much to bear.  Failing to resolve the exceeding high debts quickly can cause serious consequences and a calamity can befall on the nation.  We have no choice but focus on debts reduction to a fair level.

There are also reports that zakat system has been abused especially in the proper distribution of its purposes of a public fund.  What is the purpose of public fund when only a certain community becomes the beneficiaries? 

Maybe it is also timely in new Malaysia that a Royal Commission of Inquiry be established over the zakat system when there is a review board over income tax in Malaysia.

Joshua Y C Kong  26/2/2019