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In the light of the collapse of Islamic Bank, as a result of gross mismanagement and gross negligence, I would like to know the following very urgently

Answered as per Hanafi Fiqh by Askimam.org

In the light of the collapse of Islamic Bank, as a result of gross mismanagement and gross negligence, I would like to know the following very urgently:
 
1. Islamic Bank appointed various agents to enter into shariah compliant transactions with third parties using the funds of depositors
 
2. The bank’s appointed agents acted negligently and recklessly with the result that the depositors’ money was lost.
 
Are the depositors entitled in shariah to recover the full amount of their deposits (capital) by reason of gross negligence on the part of Islamic Bank’s agents bearing in mind that the arrangmenet between the bank and the depositors was a Mudarabah partnership? 

If not, what is the shariah position as to who should bear the loss caused directly by the agents of the bank.  Your urgent response is appreciated

Answer

1. Which Islamic bank are you referring to?

2. Is it the Islamic Bank in South Africa?

3. If that is so, that Bank collapsed a few years ago, why do you require a response very urgently?

4. Are you aware of any Shar’ee rulings issued on who is responsible for the loss and collapse of the Bank? If so, please let us know.

5. The collapse of the Islamic bank is a major issue. It is not appropriate to issue a Fatwa merely based on principles without having more insight on the issue. For that, we suggest you contact us for an appointment.

6. We will then discuss and canvass with you the way forward.

7. If we are satisfied that the outcome based on a judicial process on the issue will not be different from issuing a Fatwa, then we will consider issuing a Fatwa.

8. We wish to point out that the Darul Ifta has a Shura of Muftis which examines and discusses such issues at length before issuing a ruling.

9. Such a collective and exhaustive procedure is necessary in issues of Shari’ah as it eliminates one from doubts and suspicion based on an individualist approach and promoting one’s personal agenda.

10. We look forward to you making an appointment with the Darul Ifta. Be rest assured of our help and support, Insha Allah.

and Allah Ta’ala Knows Best

Mufti Ebrahim Desai

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This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

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