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Search Fatawaa

Subject : The Authorized mayn't Benefit from What he has been Entrusted with

Fatwa Number : 3051

Date : 12-03-2015

Classified : Agency Authorization

Fatwa Type : Search Fatawaa

Question :

I work for a private company and my friend works for another. We have agreed on working together in different fields relying on our expertise and personal acquaintances in the labor market. In fact, my friend holds an important position in the company where he works, and it has lots of enterprises which he steers in the direction that he finds fit, so he started referring micro-enterprises to our company, and I started executing many of them for their market price, or less, but with maintaining the required standards, and the profit is shared by both of us. However, the owner of the company doesn`t know that I`m the partner of the manager in his company. What is the ruling of Sharia on this, and the money that we have earned so far?

The Answer :

All praise be to Allah; and may His blessings and peace be upon our Prophet Mohammad.

Your friend is a staff member of the company where he works, and he has been authorized by that company to refer these bids in its best interest. The authorized is an entrusted person who isn`t allowed to make a profit for himself in any form, save with the permission of his authorizer(company). Our Prophet(PBUH) said{what means} “ Deliver trusts to whom they belong, and betray not the one who betrayed you. “{Abu Dawood}.

Moreover, Muslim jurists have agreed that it isn`t permissible for the authorized to sell to himself that which he was authorized to sell; therefore, it isn`t permissible for your friend to refer those bids to himself through your own company even with meeting the required prices and standards. Our Prophet(PBUH) said: “I heard Allah's Apostle saying, 'Both legal and illegal things are evident but in between them there are doubtful (suspicious) things and most of the people have no knowledge about them. So whoever saves himself from these suspicious things saves his religion and his honor.”{Bukhari}.

The right thing for your friend to do is to be frank with the administration board of the company where he works, and tell them everything, so if they approve of the referred bids , then there is no harm in that. However, if they don`t, then you have acquitted yourselves before Allah Who is the One and only Sustainer.

We pray that Allah provides for you from that which is legal.

However, it is imperative that both of you repent to Allah and seek His forgiveness. As regards the profits which you have made, and since your company has done the required tasks properly, you aren`t obligated to give them back because they were the fruit of a legitimate business. And Allah knows best.



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