TID has issued a press release that its Shari'ah Board met 22 May and reviewed the Wakala Contract between TID and Banque du Liban et D'outre Mer ("BLOM").
The Board ruled as follows:
- The contract is Shari'ah compliant.
- The Company should not make assertions in Court about whether a contract complies with Shari'ah or not before it has obtained the judgment of its Shari'ah Board.
- The Company should withdraw this defense its Court Case against BLOM.
The Company noted at the end of the press release that it had done so.
This is a rather significant development.
First, TID's Shari'ah Board has set down a clear rule. The determination of what is Shari'ah compliant is the Board's responsibility and not management's. And that no actions are to be taken before the Board rules.
Second, in no uncertain terms, TID's Shari'ah Board has "slapped down" TID's rather shabby (I'm being polite again) attempt to hide behind the Shari'ah to avoid settling an obligation.
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3 comments:
While prededent has no real place in Islamic jurisprudence, I rather hope that they make an exception this time.
Laocowboy2
Thanks.
Perhaps, more important than the concept of precedent in this case is the concept of honesty. That I believe applies in all cases.
i guess TID didn't pay its sharia board enough. for those of you unfamiliar with islamic finance, sharia boards are theologians-for-hire that will sign off on whatever you pay them enough for.
obviously TID's slush fund ran out.
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