As a Muslim, zakat is the third pillar of Islam that must be carried out to meet the criteria in religion. It is the 'engine' of the economy of the community that is capable of collecting billions of ringgit per year.
However, where there is honey, there are bees. Behind any profit, there must be 'hands' with malicious intent to take advantage of the wind.
Recently, the country was shocked by the exposure of RM230 million in funds associated with zakat collection suspected of being misappropriated by a non-governmental organization (NGO).
Although the Malaysian Anti-Corruption Commission (MACC) explained that it was not entirely from the official zakat institution, its modus operandi is still worrying.
Let's analyze how these sacred funds can be misused by irresponsible parties:
1. Modus Operandi of NGO "Third Party"
Many zakat institutions appoint agents or NGOs as zakat collectors on their behalf.
There are NGOs that charge exorbitant commissions or worse, transfer funds directly to personal accounts for their own investment purposes.
2. “Grey Zone” Investment Issues
Zakat funds that are not immediately distributed are usually invested to generate returns for the benefit of the asnaf.
When there are no strict investment guidelines, appointed company officers or directors can abuse their power to invest in entities with personal interests.
Without transparent audits, these investment returns may not fully reach the asnaf funds.
3. Weaknesses in Asnaf Status Collection Data
Although the system is increasingly digital, verification of asnaf status still has weaknesses.
The absence of a national centralized data system means that a recipient may receive multiple assistance from various agencies, while other asnafs continue to be marginalized.
4. Lack of National Audit Standards
Malaysia does not have a single national zakat audit body. Each state has its own enactment and management.
The difference in the level of transparency between states has led to areas with lax internal controls, opening the door for large-scale irregularities to go undetected for years.
This RM230 million issue is a wake-up call for all parties, even though the zakat institution insists they are not involved, the trust of zakat payers remains damaged.
A comprehensive reform of the public and welfare fund management system needs to be expedited to close the loopholes and abuse of trust.
