The Maldives Zakat House has assured that investing money held in the Zakat Fund will not compromise the rights of beneficiaries.
The assurance follows the introduction of new regulations governing the management of the Zakat Fund, which came into force in March this year. The regulations allow money held in the fund to be invested with the aim of increasing the amount available for distribution to eligible zakat recipients and other approved purposes.
Speaking on PSM News' Raajje Miadhu' programme, Director General of the Zakat House, Sheikh Imthithaau Abbas, said all investments would be carried out in accordance with Islamic Shariah and under strict conditions. He stressed that the Zakat Fund belongs to the needy and that any investments would be made without diminishing their rights in any way.
"All the regulations required under the law have now been drafted and submitted to the Attorney General's Office. Some of these regulations have already been gazetted," Sheikh Imthithaau said.
The Zakat House has already begun implementing investment projects through the fund. These include the development of the Darul Salaam Waqf building on a 20,000-square-foot plot in Hulhumale' and the Darul Arqam project on a 2,000-square-foot site in Malé.
Under the Zakat Fund Management Regulation, the fund consists of money collected from Zakat al-Mal and Zakat al-Fitr, as well as income generated from investments made through the fund. Responsibility for managing the fund rests with the Maldives Zakat House under the Zakat Act.
The regulation states that investments may only be undertaken to increase the amount available for distribution to zakat beneficiaries and other approved purposes. Before any investment is made, the advice of the fund's Advisory Committee must be obtained.
It also specifies that investments must be carried out by the Maldives Zakat House. Where investments are undertaken jointly with other parties, they may only involve government funds or state-owned institutions operating in compliance with Islamic Shariah. The Zakat House is also required to monitor all investments made under the fund in accordance with the regulation.
The regulation further requires the Zakat Fund to be audited annually, with the audit submitted by the Auditor General to the Parliament. In addition, an annual report on the management of the fund must be prepared and submitted to the President and the Parliament within three months of the end of each calendar year.