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International Journal of Social Science Research (IJSSR) eISSN: 2710-6276 | Vol. 4 No. 3 [September 2022]
Journal website: http://myjms.mohe.gov.my/index.php/ijssr
CONCEPT OF WAKALAH ZAKAT IMPLEMENTED BY LEMBAGA ZAKAT NEGERI KEDAH
Nur Zainie Abd Hamid1*, Shamsinar Ibrahim2, Hasyimah Razali3 and Muhammad Zakwan Halim4
1 2 3 Faculty of Business and Management, Universiti Teknologi MARA, Kedah, MALAYSIA
4 Lembaga Zakat Negeri Kedah, MALAYSIA
*Corresponding author: [email protected]
Article Information:
Article history:
Received date : 13 July 2022 Revised date : 20 July 2022 Accepted date : 25 August 2022 Published date : 9 September 2022
To cite this document:
Abd Hamid, N. Z., Ibrahim, S., Razali, H., & Halim, M. Z. (2022).CONCEPT OF WAKALAH ZAKAT
IMPLEMENTED BY LEMBAGA ZAKAT NEGERI KEDAH.
International Journal of Social Science Research, 4(3), 49-57.
Abstract: Wakalah zakat allows part of the zakat amount to be returned to the zakat payer by the zakat collection centre. This concept highlights zakat payers as amil representatives (Wakil) to distribute the returned zakat to eligible asnaf groups. Although this system has been implemented since year 2015 in the state of Kedah, however, the system is still unknown to the public. This research is aims to review the concept of Wakalah zakat implemented by Lembaga Zakat Negeri Kedah (LZNK);
and to make recommendations on how Lembaga Zakat Negeri Kedah (LZNK) can improve the zakat collection.
A qualitative approach was applied to target key persons served in Lembaga Zakat Negeri Kedah (LZNK). Few recommendations are made based on the evaluation of findings that include rewarding zakat payers to enrich their motivation, increasing the visibility of zakat distribution efforts made by Wakil and establishing online monitoring and reporting to assist reporting process by zakat payers (Wakil). This research is expected to improve the quality of services provided by Lembaga Zakat Negeri Kedah (LZNK) as a zakat collection centre. It is also hoped that this research will be able to improve Lembaga Zakat Negeri Kedah (LZNK) efforts in increasing the amount of zakat collection each year as a way to help the economy of underprivileged groups in Malaysia.
Keywords: asnaf, Lembaga Zakat Negeri Kedah (LZNK), Muwakkil, Wakalah, Wakil, zakat collection.
Abstrak: Wakalah zakat membenarkan sebahagian daripada jumlah zakat yang dibayar dikembalikan kepada pembayar zakat oleh sesebuah pusat pungutan
1. Introduction
Zakat is an obligation that must be fulfilled by every Muslim. Zakat has the potential to lower the poverty gap and improve the economy of Muslims in the world. To achieve this objective, various efforts have been made by zakat institutions to increase the amount of zakat collection.
As a result, the annual report shows that there is an increase in the collection of zakat every year in Malaysia (Faizul & Shahir Akram, 2021). The importance of zakat in the socio- economic aspects of society is known by all parties. However, the zakat distribution mechanism
zakat. Konsep ini menganggap pembayar zakat sebagai Wakil amil untuk mengagihkan zakat yang dipulangkan oleh pusat pungutan zakat kepada golongan asnaf yang layak. Walaupun sistem ini telah dilaksanakan semenjak tahun 2015 di negeri Kedah, namun, masih ramai yang tidak mengetahui kewujudan sistem ini. Kajian ini adalah bertujuan untuk mengetahui konsep Wakalah zakat yang dilaksanakan oleh Lembaga Zakat Negeri Kedah (LZNK), selain bertujuan untuk menghasilkan cadangan berkenaan bagaimana Lembaga Zakat Negeri Kedah (LZNK) boleh menambah baik proses kutipan zakat. Pendekatan kualitatif telah digunakan melalui temuduga secara medalam untuk menyasarkan individu- individu penting yang berkhidmat di bahagian Wakalah, Lembaga Zakat Negeri Kedah (LZNK) dan juga pembayar zakat. Beberapa cadangan telah dikenalpasti berdasarkan penilaian dapatan yang merangkumi pemberian ganjaran kepada pembayar zakat untuk meningkatkan motivasi mereka secara berterusan, meningkatkan aspek ketelusan pengagihan zakat oleh Wakil dan mewujudkan pemantauan dan pelaporan dalam talian untuk membantu memudahkan proses pelaporan oleh pembayar zakat. Kajian ini diharapkan dapat meningkatkan kualiti perkhidmatan yang disediakan oleh Lembaga Zakat Negeri Kedah (LZNK) yang sudah sedia cemerlang sebagai sebuah pusat pungutan zakat. Kajian ini juga diharapkan dapat menambahbaik usaha Lembaga Zakat Negeri Kedah (LZNK) dalam meningkatkan jumlah kutipan zakat setiap tahun sebagai salah satu cara untuk membantu menaikkan ekonomi golongan yang kurang berkemampuan di Malaysia.
Kata kunci: asnaf, Lembaga Zakat Negeri Kedah (LZNK), Muwakkil, pungutan zakat, Wakalah zakat, Wakil.
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remains unanswered is why the number of people who are not helped is increasing? This has created a challenge for the zakat collection centre, especially from transparency in the management of zakat. Therefore, a study needs to be done to review and improve the zakat management system so that the main purpose of zakat collection achieves the targeted goals.
This is important to identify the real needs of the asnaf group according to priority as well as prioritize those who are truly eligible to receive zakat distribution (Ahmad Fatoni & Muhamad Fakhrudin, 2021). Since the definition of zakat management is large, and many studies can be done to improve the quality of zakat management, therefore, the researchers decided to focus only on the management of zakat Wakalah, a type of zakat that is rarely known to the public.
Past studies have reported that the zakat collection mechanism in Malaysia is very efficient and among the best in the world. however, the existence of bureaucracy in the method of zakat distribution causes the asnaf to remain poor (Faizul & Shahir Akram, 2021). This is because the distribution of zakat is not followed by effective monitoring methods. Issues like this often get the attention of the community where the community questions the asnaf who have dropped out, even though a large allocation of zakat has been channelled (Mohamad Muhaimin, et al., 2021).
Several studies have shown that there are loopholes in the zakat distribution system that cause the efforts made not to achieve maximum impact. For example, a study conducted by the University of Malaya (UM) in 2010 suggested that the distribution of zakat be focused on the poor and those who need financial assistance. A study by Universiti Kebangsaan Malaysia (UKM) in 2008 showed that zakat capital assistance needs to be changed with strict and effective monitoring to ensure its success and effectiveness. Therefore, as one of the improvement initiatives, zakat institutions in Malaysia have introduced a Wakalah zakat distribution system to strengthen the management of zakat collection and distribution in Malaysia.
The Kedah State Zakat Board (LZNK) is an institution entrusted to manage the collection and distribution of zakat throughout the state of Kedah. Specifically, LZNK has implemented the distribution of zakat by Wakalah for the past few years. This method of distribution of zakat by Wakalah covers four segments, namely individuals, educational institutions, companies and employers. Monitoring is done by LZNK through reports sent by appointed representatives.
However, not all representatives acted to submit reports to LZNK. This has indirectly undermined the aspect of management transparency at LZNK. In addition, several other issues in zakat management contribute to inefficiency in the zakat management process. Among them are staff in zakat institutions who are incompetent in the aspect of zakat distribution (Azman et al., 2016), widespread corruption issues (Nurul Athirah et al., 2018), bureaucratic problems (Mohd Sharil et al., 2016), weaknesses in records management (Nurul Athirah et al., 2018), distribution of zakat to certain asnaf groups without following priorities (Eza Ellany et al., 2014) and also the issue of excessive zakat not being distributed to eligible asnaf groups (Ahmad Fathi, et al., 2017). Therefore, taking these issues as research problems, this study was conducted to find the best and more effective solution to improving the quality of Wakalah zakat distribution management in LZNK with the main objective to produce an effective framework or mechanism for monitoring Wakalah zakat distribution.
2. Literature Review
2.1 The Basic Concept of Wakalah
According to syara’, Wakalah is defined as delegating or giving authority to another party in a matter that is required where it involves handing over duties to another party to manage matters that do not violate Syariah (Al-Sa’ad, 2008; Hailani & Sanep, 2009). However, in general, Wakalah refers to the act of representing a person in various matters including business dealings, division of property, management and estate planning (Syahmi, et al., 2021).
The basic concept of Wakalah should involve the four pillars; Muwakkil, Wakil, Muwakkal Bih and Sighah (Ijab and Qabul) as presented in Figure 1. Through this concept, Muwakkil delegates another person to perform some tasks on behalf on behalf of him (Muwakkil). For instance, in the zakat management concept, the zakat institution delegates the zakat payers to distribute the paid zakat at a certain rate. In this case, the zakat payers’ authority is limited to distributing that particularly paid zakat at a given rate. In addition, the Muwakkil also needs to state the ijab (offer) to the Wakil. In return, the Wakil also needs to state qabul (acceptance) to the Muwakkil on the subject matter that has been agreed (distribution of zakat). This process can be seen in Figure 2.
Figure 1: The Four Pillars of Wakalah
Muwakkil
•Things or subject matter that is being entrusted for, or the business deals involved
•Ijab (offer) and Qabul
(Acceptance)
•Authorizer, mandatory, client, principal
•The authorized agent,
representative, proxy, trustee
Wakil Muwakkil
Muwakkal Sighah Bih
Wakil Muwakkal
Bih Ijab
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2.2 The Need for Wakalah
The implementation of Wakalah has the potential to contribute to the increase in the amount of zakat collection. In addition, it will indirectly help to expand the radius of zakat distribution to eligible asnaf group. From the aspect of the involvement of the zakat payer, Wakalah may help to purify the heart and increase the sense of sympathy and empathy they have.
The Muslim scholars have reached a consensus on the permissibility of Wakalah based on evidence in Al-Qu’ran and Hadith. This is because people need assistance to perform certain tasks which they are unable to do themselves. The need to practice Wakalah has been mentioned in the Qur’an and also the hadith. As stated in the Qur’an (verse 60, surat At- Tawbah), “zakat is aimed for the poor and the needy and those employed to administer the (funds).” The verse implies the assigning of agents for zakat management, which includes collection and distribution.
(Verse 60; Surat At-Tawbah)
In hadith, as reported by Urwah R. A. that the prophet S.A.W. gave him one gold Dinar to buy with it a sheep but instead he managed to buy two sheep. In other words, Urwah R. A. has been appointed by the prophet S. A. W. as an agent to buy the sheep. He then sold one of them for one gold Dinar and then presented the prophet with both the sheep and one gold Dinar that he acquired. The prophet S. A. W. prayed for him to be given blessings in all his trade and transactions and mentioned that even if he sells solid soil, he will definitely gain profit from it.
Besides that, as reported by Abi Hurairah R. A., the Prophet S. A. W. also sent Umar R. A. to be his agent in the zakat collection.
2.3 Wakalah in the State of Kedah
Various transformations have taken place in the management of zakat in the state of Kedah since the privatization of Jabatan Zakat Negeri Kedah (JZNK) to Lembaga Zakat Negeri Kedah (LZNK) in 2015. This transformation has made the zakat management and administration system more effective where various improvements have been made including from the legal aspect. For instance, section 19 under the Kedah Darul Aman Zakat Board Enactment 2015 (ELZKDA 2015) provides that LZNK may appoint a representative to manage the collection and distribution of zakat (Hafiz, et al., 2017). This reform has led to the implementation of the Wakalah system in the state of Kedah starting in 2015.
Generally, Wakalah is not a new system introduced in Malaysia. In fact, this system has been practiced by eight states in peninsular Malaysia including Perlis, Kedah, Perak, Selangor, Wilayah Persekutuan, Terengganu, Melaka and Negeri Sembilan (Raja Muhd, et al., 2020).
However, other states have not yet taken a similar approach to improve zakat management.
3. Method
This study uses a qualitative approach through an interpretive design that aims to explore the implementation of the mechanism of distribution of zakat by Wakalah to the poor in the state of Kedah as the concept of Wakalah used is still less clear in the eyes of the Malaysian Muslim community and less attention. In addition, this method also aims to explore the best and most effective mechanism for monitoring the implementation of zakat distribution by Wakalah by Wakil appointed to improve the quality of zakat distribution in the state of Kedah. Data were collected through in-depth and unstructured interviews with zakat officers who are responsible for managing the distribution of zakat by Wakalah in LZNK. The interview session is conducted through google meet meetings. The session is recorded to record the responses of the interviewees. Unstructured questions were asked and interviewees were given the freedom to answer. The inclusion of unstructured questions allows researchers to obtain details information to answer the research questions. The interview questions formed cover aspects of the application process, selection process, approval process, implementation process and also the monitoring process. In addition, to validate the information obtained from the interviewee, the researchers also examined the related documents found in LZNK.
4. Findings
4.1 Wakalah Zakat Management by Lembaga Zakat Negeri Kedah (LZNK)
The Wakalah zakat management process at LZNK begins with the receipt of a completed form or application letter to become a representative (Wakil) from individuals, government or private organizations and business agencies. In this case, the applicant can make an application for distribution of zakat by Wakalah for the payment of zakat in the current and previous years.
LZNK will then review and print the zakat payment data by the applicant through the system.
At this stage, a review will be made as to whether the payer is eligible to apply to be a representative or not. If the applicant is found ineligible, the application submitted by the applicant will not be processed. For eligible applicants, verification of the applicant's data will be made by the Information Technology Department. After confirmation is made, approval from the Chief Executive Officer must be obtained to determine the amount of Wakalah eligible to be received by the applicant. Subsequently, payment vouchers will be provided by LZNK to eligible applicants and the payment process by the Finance Department will be processed either via Electronic Fund Transfer (EFT) or by cheque. For payment by cheque, the delivery of the cheque will continue to be made to the eligible applicant. During this period, eligible applicants will be required to complete a Wakalah contract form. Then, as proof of documentation, the representative (Wakil) has to submit the Wakalah distribution report within one year from the date of receiving the Wakalah money. This report will be kept as a record and proof of the transaction.
4.2 Recommendations
The findings of the study found that the distribution of Wakalah zakat is a concept that is still newly applied by LZNK as it has only been applied for the past few years. Based on observations, zakat payers are still less aware of the existence of Wakalah zakat. So, to encourage zakat payers to get involved, LZNK needs to play a role especially by intensifying
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are some suggestions and recommendations that can be considered by zakat institutions to improve the management aspect of Wakalah zakat.
4.2.1 Rewarding zakat payers to enrich their motivation
As Muslims, zakat payers should always be sure that the payment of zakat will contribute to the purification of their property as well as help in earning their living. Such a belief should be a constant motivation to the zakat payers (Siti Saufirah, et al., 2016). Besides, Nurkholis and Jayanto (2020) found that tangible motivation is also an important factor to produce zakat payers who are always consistent in performing zakat regularly. Motivational aspects such as the issuance of certificates and a range of appreciation can increase the desire of zakat payers to always be enthusiastic to contribute to the management of zakat (Syadiyah, 2021).
4.2.2 Increase the Visibility of Distribution efforts made by the Wakil
The present study also found that the number of zakat payers registered as Wakil is relatively low. This is most probably influenced by their satisfaction with the management of zakat by the zakat institutions (Zaharah, et al., 2010). This is because, many zakat payers take the approach of paying zakat to unregistered zakat institutions or directly to asnaf (Fidlizan, et al., 2015). Satisfaction about the efficiency of zakat management is an important factor that influences an individual to pay zakat informally like this. The increase in direct distribution of zakat is very worrying because it is feared that zakat will not be distributed to the eight designated groups who are eligible to receive zakat (Syahmi Haziq & Hairunnizam, 2020).
Therefore, to avoid such a situation, the aspect of transparency of distribution and efficiency of zakat management is a matter that needs to be taken seriously to solve this problem. One of them is to increase transparency through the dissemination of information to the public regarding the distribution of zakat made by the Wakil. Such a solution can increase the level of trust of zakat payers to continue paying to registered zakat institutions.
4.2.3 Establishing online monitoring and reporting to assist reporting process by zakat payers
Based on observations and also a review of relevant documents, it was found that the reporting system for Wakalah is still done manually. In addition, no monitoring is done on the reports sent. Some representatives did not submit reports within the stipulated period. Although the management of Wakalah is associated with honesty and trust aspects between Muwakkil and Wakil, yet, zakat institutions must develop a mechanism to monitor the reporting of Wakalah zakat distribution by Wakil. The distribution of zakat to the asnaf also requires an effective distribution system for each party to feel they were treated fairly and equitably (Sanep Ahmad, 2009). This is essential to ensure transparency and avoid the public’s negative view of the zakat institution, especially about the misuse of the zakat fund. An effective reporting mechanism is also important to ensure that the reputation of the zakat institution is always good and reliable.
5. Conclusion
Wakalah zakat should be applied by all zakat institutions. This is important as an effort to ensure that the collection of zakat is always adequate and the distribution of zakat is satisfactory and able to reduce the poverty gap. This study aims to see the effectiveness of the implementation of the concept of Wakalah zakat in LZNK. The study found that the management of Wakalah zakat is very effective and efficient in LZNK. However, there are still aspects that need to be improved, especially to increase public trust as well as increase the element of transparency in the management of zakat by LZNK. Taking into account the significant role played by LZNK, it is hoped that the present study will be able to continuously improve the quality of zakat management and administration to increase community confidence in zakat institutions.
6. Acknowledgement
This study is fully sponsored by the Zakat, Wakaf and Sedekah (ZAWAS) grant, Lembaga Zakat Negeri Kedah (LZNK) in 2020. Appreciation is also expressed to the management of Universiti Teknologi MARA, Kedah Branch for the support and cooperation given throughout the research process in ensuring the completion of this study.
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