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Being an agent for a company whose dealings are unclear

Answered according to Hanafi Fiqh by Muftionline.co.za

Q: Zaid has invested Bakr’s money in one ABC Group of Companies. ABC Group has given Zaid commission on Bakr’s investment. ABC Group has provided Zaid with the title of Sales and Marketing agent where his work is to just convince & collect investment from people for ABC Group. ABC Group does not pay any salary to Zaid but pays commission on the amount of investment collected per month from people. ABC Group has appointed thousands of Sales and Marketing agents/executives like Zaid to collect investment. These Agents have no record or idea of amount of investment being dumped in ABC Group. On contrary if any agent questions this to ABC Group he is terminated from his position. Their work is to spread the word given by ABC Group without questioning on public or private forum. ABC Group has formed no. of different Companies under its umbrella and shows some physical assets & its operation to agents and investors. But when we check the Audit report & Balance sheet of these companies from related Government Department we clearly find that paid up capital is almost nothing against the amount being collected. We find that profit & loss statements are false & not even equal 1% of profit what is actually being distributed to investors. Zaid & Bakr have no clarification for this.

Further to convince and attract more and more investors ABC group is occasionally inviting such non-Muslims film actors and actress who are famous for their vulgarity in Movies and TV Serials. Agents and investors both know it very well.

Question:

1. The commission amount what Zaid & other agents/executive gets from ABC Group is Halaal or Haram?

2. The profit amount what investors are getting from ABC Group is Halaal or Haraam?

Bismillaah

A:

1. If there are no profits then how can there be a commission.

2. Those who have conclusive evidence that the business has no wealth and it is just using the shareholders’ money to pay out the profits it is not at all permissible for them to take this wealth. They should cancel their investment.

And Allah Ta’ala (الله تعالى) knows best.

 

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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