lesson 4 - waqf studies

Module 4Decline and the recent growth of Awqaf

WAQF STUDIES INTRODUCTORY COURSE

Course Content

© – AWQAF SA WAQF STUDIES INTRODUCTORY COURSE Slide 2

• Mismanagement of Awqaf;• Colonisation;• Post-colonial nation-state nationalisation of Awqaf;• Current Experiences in the Muslim World and in Muslim Communities outside the Muslim World• Kuwait Awqaf Public Foundation;• National Awqaf Foundation of South Africa;

• An Nur Waqf – Johor Corporation, Malaysia;• Hajee Mahomed Lockhat Wakuf - Durban, South Africa.

Learning Outcomes


1. Understand the decline of Awqaf due to mismanagement;2. Understand the decline of Awqaf due to colonization;3. Understand the decline of Awqaf due to post-colonial

nation-state nationalization of Awqaf;4. Understand the history of Awqaf in Kuwait and its

Administrative Development;5. Understand the history, organizational structure and

achievements of Awqaf SA;6. Understand the history and achievements of An Nur Waqf

– Johor Corporation, Malaysia;7. Understand the history and achievements of Hajee

Mahomed Lockhat Wakuf.

Decline in the growth of Awqaf


The growth and popularity of Awqaf declined primarily because of the following reasons:

•Mismanagement of Awqaf assets,

•Colonisation; and

•Post-colonial nation-state nationalisation of Awqaf.

Understand the decline of Awqaf due to mismanagement


• As Waqf became popular and powerful, there was a period when public Waqf was mismanaged and neglected.

• Some of the public Waqf were abused by greedy mutawallis (trustees) who exploited the public Waqf assets for their own benefit.

• The mismanagement and abuse of Waqf assets were resented, resisted and deterred by the public which caused the decline in the growth of Waqf.

Understanding the decline of Awqaf due to Colonization


• Starting from the 19th century until the middle of the 20th century, many Islamic countries were colonised by the Europeans.

• The European invasion was not only against Islamic civilisation, cultural and economic but was also military and political.

• The colonisers authorised policies in many parts of the Islamic world against Islamic Awqaf and their strong institutions in order to drive them towards disintegration and bankruptcy.


The French policy during the protectorate era (1912-1956) were against Islamic bequest in the countries that were under the control of the French authorities and were based on five criteria: 1. Squandering anything that Waqf can do without and misusing of its money and property;2. Exploiting the Muslim poor in the worst manner (i.e., those who used to benefit from Waqf property);3. Removing the Islamic spirit from Waqf work and encouraging the system of partiality;4. Stinginess in all Islamic services that Waqf was founded for;5. Resistance against the Sultans influence and decrease of its influence as much as possible.

Understanding the decline of Awqaf due to Colonization – Continued…


• In Morocco, the French colonisers transferred the best Waqf land to them.

• In 1928, 10.000 hectares of land was transferred, and in 1930 160 lots were transferred while 288 real estate properties were sold. In the same way, Waqf buildings were occupied by the colonial administration.

• Big loans from Waqf fund were given to the services related to its administration but none of these credits were reimbursed to the Waqf.

• Damaged mosques and Islamic schools that were under Waqf control were intentionally left neglected and abandoned. Eventually, these Waqf assets collapsed due to the destruction by the colonisers.



• The French colonisers also had the aim of destroying the Islamic culture and Arabic language. In one instance, the French colonisers deliberately turned a respectful Islamic school into a barn.

• The deliberate destruction of Awqaf assets was repeated in Algeria, Tunisia, Syria and Lebanon.

• The rationale behind the deliberate destruction of Awqaf was to destroy its influence, civilization role, together with the independence and moral and material immunity it used to provide.


Understanding the decline of Awqaf due to post-colonial nation-state nationalization of Awqaf


• “The New National Government” or “Nation-State” inherited a lot from the colonial governance mindsets particularly in terms of institutions, laws and policies. The independent governments continued with the the policy against Islamic institutions that abolished, marginalized or weakened Waqf institutions and property.

• The independent new government transferred the position, influence and responsibilities of the Waqf institutions and started to control Waqf institutions.


Recent years has seen the revival of Awqaf both in Muslim and Muslim minority countries.

Some of the examples of Awqaf organisations are:•Kuwait Awqaf Public Foundation (KAPF)•Awqaf South Africa (Awqaf SA);•An Nur Waqf – Johor Corporation, Malaysia;•Hajee Mahomed Lockhat Wakuf – South Africa.

Current Experiences in the Muslim World and in Muslim Communities outside the Muslim World

Understanding the decline of Awqaf due to post-colonial nation-state nationalization of Awqaf – continued …


• The new independent government in the “new state” in the Islamic world adopted the policy of control over social life and ascribed all its functions and facilities to the government and its institutions. What reinforced this trend was the emergence of totalitarian system experience and its influence on the Islamic world.

• Due to the management inefficiency and the failure of good governance structure by the government, the Waqf sector continued with the downward spiral. The role of Waqf in social development, social welfare, cultural activity and educational development declined in growth and Waqf was dominantly limited to mosques and its activities.

Understanding the history of Awqaf in Kuwait and its Administrative Development


History of Waqf in Kuwait and its Administrative Development•Waqf is an old establishment in Kuwait. The first documented waqf is the Bin Bahar mosque which was established in 1108AH , corresponding to 1695 AD. The early waqf in Kuwait were administered by the by the waqifs (dedicators) or the nazirs appointed by them.

•Waqf is established through the emerging needs of the society and neighbourhood, based on social solidarity. Waqf assets included houses, shops, water wells, palm farms and fish traps. There were awqaf on attending to mosques, providing meat, food and drinking water, in addition to memorizing the Holy Book, charities, books, supporting kinsmen and the poor and the needy.

Understanding the history of Awqaf in Kuwait and its Administrative Development – continuation …


• From the 20th century, the government of Kuwait took steps in developing governmental system and expanding its powers to cover the Waqf domains. In 1921, a waqf department was established in order to set rules and regulations to develop waqf.

• The powers of the Waqf Department expanded to utilize waqf

in serving places of worship and the needy. At the same time, non-governmental participation in managing awqaf was given more attention through the establishment of the Awqaf Board.



• The Waqf department set the administrative structure and specified the duties and responsibilities of employees. A verdict was issued appointing a director general for the department which started to exercise its authority gradually on the mosques which were under the control of Imams and Muezzins. A new plan to attend to and restore mosques, together with specifying the remuneration of the Imams and muezzins was initiated.

• In April 1951, an Amiri Decree was issued to apply shari'a-based waqf regulations to handle matters through opinions elicited from the four schools of Islamic thought.



• With the independence of Kuwait, the awqaf witnessed a new era as the department had changed into a ministry in 1962. It was known as the ministry of awqaf, then 'Islamic affairs' was added in October 1965.

• The ministry took charge of many duties and responsibilities, including waqf, whose responsibility was entrusted to an assistant undersecretary for administrative and financial affairs. Things remained so until July, 1982, when an independent sector for awqaf was established under the authority of an assistant under secretary.



• After the liberation of Kuwait from the Iraqis, regulations were issued to re-organize the ministry of awqaf & Islamic affairs.

• Consequently, the waqf sector combined two sub-branches: the first is related to the development of waqf resources to be managed by a board for developing these resources. The other was in charge of managing waqf affairs. This system proved to bring about positive results, particularly in terms of flexibility.

• Kuwait Awqaf Public Foundation (KAPF) was formed in November 1993 as result of the above developments.

• KAPF was established as a governmental body, enjoying relative autonomy in decision-making in compliance with governmental rules and regulations to take charge of awqaf within Kuwait and outside Kuwait.



Kuwait Awqaf Public Foundation (KAPF)

•KAPF is responsible for promoting waqf and attending to all that is related to it, managing its funds, investing them and spending their proceeds as specified by the waqifs in compliance with the shari'a purposes of waqf and to develop the society civilization, culturally and socially to ease the burden of the poor and the needy.

•Awqaf affairs board is the supreme authority in charge of managing waqf, consisting of Shari'a Committee, the Committee for Developing and Investing waqf revenues and the Committee of Waqf Projects.



The strategic duties and responsibilities of KAPF includes:

•Calling for Waqf:• Media and marketing activities• Interest in waqifs• Interest in Non-Governmental Sector and Public Utilities

Societies

•Investing Awqaf and Augmenting Proceeds;

•Spending the Proceeds and Developing a Society.



Waqf funds and Projects

•A waqf fund is established as required by necessity to fulfill actual needs as based on specific studies conducted by KAPF.•Once the idea of establishing a waqf fund is approved, a decision by the Minister of Awqaf and Islamic Affairs and Chairman of Awqaf Affairs Board is issued, together with specifying the domains of its activities. •A waqf fund conducts its activities through a board of directors which defines its policies, plans and programmes to achieve the objectives for which it was established. The board of directors includes some private citizens and it is allowable to co-opt representatives from some concerned governmental bodies.



• Waqf funds carry out several activities related to development in order to be able to fulfill the needs of a wide sector of society.

• These activities may include serving the Holy Quran and its sciences, attending to mosques, attending to the disabled and people with special needs, developing environment, extending support to culture and thought issues, health development, family care, community development and Islamic co-operation.

• Other areas can be added through monitoring societal needs.



Objectives of Waqf Funds•Reviving waqf by promoting its developmental role by integrating and coordinating projects, while observing the priorities through popular projects having developmental dimensions.•Developing charitable work through presenting a new model to be followed in managing waqf development and realizing unique results at the lowest cost.•Addressing the citizens' needs in areas not properly handled by other agencies so that waqf moneys would meet the realistic societal needs through a prioritization plan which observes integration with other governmental and non governmental bodies.•Involving popular participation in promoting waqf and managing its projects and providing flexibility to waqf activities through an array of rules an regulations which secure discipline and smoothness.



Financial Resources of Waqf Funds Each fund depends upon the following:•Waqf proceeds allocated to it at an annual basis.•Proceeds of new awqaf whose objectives are identical to the objectives of the funds.•The fees for the activities and services extended by the fund.•Grants, bequests and donations which do not contradict with the nature of waqf, its policies and objectives of the fund. Bequests and donations provided by foreign agencies should be approved in advance by KAPF Planning Committee.



Multi-Relations of Waqf Funds: Relation between waqf funds and KAPF •A committee to co-ordinate between waqf funds was established to monitor and control the relation between waqf funds and to improve their performance, oversee their activities, avoid overlapping or duplicity and co-ordinate in respect of joint projects in which other bodies other than waqf funds are involved.•KAPF offers facilities to lower operational costs and raise performance through follow up and promotion and offering shari'a, legal, financial, administrative and technical consultations to avoid any contradiction or duplicity in their activities.



Developing Waqf Funds

In order to promote waqf funds and to achieve effectiveness and objectives, KAPF decided to merge some funds to four main categories as follows:

•The Waqf Fund for The Holy Quran and its Sciences;•The Waqf Fund for Attending To Mosques;•The Waqf Fund for Social and Scientific Development;•The Waqf Fund for Health Development.



Waqf projects

A waqf project is an organizational mould organized by KAPF, or in collaboration with some governmental or non-governmental bodies. Some examples of the projects established by KAPF are as follows:•Kuwait Autistic Center;•Project of Settling Family Disputes;•Question and Answer Center;•Anis, the Young Reader Project;•Prophetic Hadith and Biography (Al Seera al Nabawiyya) Academy;•Project of Time Waqf;•All charities spending.



INTERNATIONAL DIMENSIONS OF KAPF EXPERIENCE

At the International level, KAPF has contributed towards the following projects:•Project of Waqf Bibliography;•Developing Waqf Studies and Researches Project;•Project of Waqf Databank;•Training Waqf Cadres Project;•Project of Presenting current Waqf Experiences;•Project of Awqaf Journal;•Project of Waqf Jurisprudential Issues Forum;•Waqf Thesaurus Project;•Project of Codifying waqf Regulations.

Understand the history, organizational structure and achievements of Awqaf SA


• Awqaf SA™ was pioneered in 2000 as an independent community-based and owned trust, dedicated to the establishment of the institution of Waqf and the empowerment of communities.

• Awqaf SA is a charitable endowment (waqf) receiving organization. It invests endowment funds and spends only the income generated from investments to fund a variety of community development projects and programs promoting Integrated Community Development and Self-Reliance.

• Awqaf SA is not affiliated to any organization but participates and contributes wherever possible. Awqaf SA enters into Cooperation and Friendship agreements with relevant stakeholders.

• Awqaf SA recently won the “Islamic Economy Award” (Waqf & Endowments section) in Dubai.

•

Understand the history, organizational structure and achievements of Awqaf SA – continued …


Awqaf SA Vision•To be the leading civil society waqf / endowment institution in Southern Africa having the best financial and human capital asset base providing cutting-edge value-adding initiatives and services to empower people and communities and excelling in all that we do with the highest standards of ethics and integrity.

Awqaf SA Mission•Development & popularization of the waqf system and mobilization of waqf funds as means of providing sustainable funding solutions; •Mobilization, training, & engagement of volunteer human resources for community service ;•Initiation and/or contribution to worthwhile sustainable community development and poverty alleviation projects and programs.



Awqaf SA Policies•Cooperation, Partnerships & Working Unity; •Promotion of Self Reliance;•Effective Corporate Governance; •Holistic view of Community Development; •Being Proactive and Relevant; •Learning Organization; •Service to all irrespective of creed or colour.

Awqaf SA Values•Ethical behaviour and code of conduct; •Sincerity of purpose;•Taqwa – Consciousness of Our Creator in thoughts, feelings, and actions.



Awqaf SA Organogram



ChaptersAwqaf SA has chapters in Gauteng, Western Cape, and a network presence in other provinces, towns, and cities.

Awqaf SA has had many great track records both in South Africa and internationally.

Understand the history and achievements of An Nur Waqf – Johor Corporation, Malaysia


• Johor Corporation (JC orp) is a state investment corporation constantly striving towards fulfilling its aspiration to become a corporate entity that defines prosperity and upholding corporate social responsibility as one of its key agenda.

• In line with its ‘Membina dan Membela’ slogan, JCorp believes that corporate success and social responsibilities work and in hand as to be realised through approaches that conform to Islamic Syari’ah principles and universal values.

• At JCorp, non-profit associations and bodies are known as Amal Business Organisation (ABO). ABO functions as a medium for JCorp to contribute towards the development of the ummah through various aspects of charity, well-being and recreation as well as entrepreneurship.

• In 2011, a total of 27 non-profit organizations are operating under JC orp’s ABO . These ABOs are divided into four categories namely Social & Public Welfare Development, Entrepreneur Development, Sports and Recreation Development and lastly, Staff Welfare.

Understand the history and achievements of An Nur Waqf – Johor Corporation, Malaysia – Continuation …


SOCIAL DEVELOPMENT AND PUBLIC WELFARE WAQAF: AN-NUR CORPORATION BERHAD (WANCorp)•Waqaf An-Nur Corporation Berhad (WANCorp) is a Limited company established to guarantee proper management of Johor Corporation and its Group of Companies’ stocks and assets under endowment. •WANCorp serves as ‘Maukuf Alaihi’ to stocks and other forms of the company’s security that has been put under endowment as a whole. •WANCorp is also responsible on behalf of Johor Corporation’s CSR initiatives to manage Waqaf An-Nur Hospital (HWAN ) & chain of clinics (KWAN ), Waqaf Dana Niaga, Waqaf Brigade and contributing to the public through fi sabilillah benefit distribution.



• The fi sabilillah benefit distribution program by Waqaf An-Nur has managed to benefit patients’ welfare, livelier mosques, entrepreneurial and educational programs.

• Contributions were also extended internationally through Somalia Humanitarian Aid and GAZA Humanitarian Fund.

• For the year 2011, WANC orp issued RM945,502.13 for contribution purposes and fisabilillah benefit distribution.



CHAIN OF JOHOR CORPORATION ANNUR MOSQUES

•Until recently, there are altogether 7 mosques including one in Sibu Island under JC orp’s management through WANCorp.

•Services provided by the mosques are not limited to serve as a place of worship, but also as a centre of knowledge for the community members.

•The chain of Johor Corporation An-Nur Mosques could now cater to over 15,000 worshippers.



WAQAF AN-NUR HOSPITAL (HWAN) AND WAQAF AN-NUR CLINICS (KWAN)•Johor Corporation is an organization responsible in developing and managing 16 Waqaf An-Nur clinics (KWAN) and a charity based Hospital under the name Waqaf An-Nur Hospital Pasir Gudang(HWAN). •KWAN s are accessible in Johor, Negeri Sembilan, Selangor, Perak and Sarawak with co-operation from the Islamic Council of the respective states. •The main objective of the clinics’ and hospital’s establishment is to provide healthcare and dialysis services to the less fortunate segment of the society.•It provides healthcare treatments at a nominal charge of RM5 inclusive of medicines and dialysis treatments at a subsidised price to the deserving. These patients also receive monetary assistance from Baitul Mal, PERKESO and all other welfare agencies that allow them to receive free treatment.



WAQAF BRIGADE•Holding fast to the vision of becoming an outstanding Islamic voluntary organisation in calamity management both nationally and internationally, Waqaf Brigade has proven its existence through a recognition granted by National Security Council (NSC). •True to its establishment objective as an emergency aid organisation, Waqaf Brigade have accomplished a multitude of humanitarian aid activities be it in times of calamity or peace.•The Waqaf Brigade team has contributed its service during the flood catastrophe which swept Segamat, Muar, Kota Tinggi and Batu Pahat during the early and towards the end of 2011. •Waqaf Brigade Elite and support groups played a role in cleaning and conserving schools, mosques, halls, clinics and submerged homes. Waqaf Brigade’s contributions have led to JCorp’s recognition in ADFIAP Awards 2011, as a participating organisation in the Corporate Social Responsibility (CSR ) program.

Understand the history and achievements of Hajee Mahomed Lockhat Wakuf


• The establishment of the Hajee A.M. Lockhat Wakuff was not only an act of worship but also an act of gratitude to Allah.

• Inspired by his wife, the late Mrs. Ayesha Lockhat to establish a Wakuff to express their gratitude for all the bounties Allah had bestowed upon them, the late Hajee A.M. Lockhat established the Hajee A.M. Lockhat Wakuff on the 22 April 1933, with the initial sum of 3000 pounds.

• It was registered in the Natal Deeds Registry on the 1 May 1933.

• The initial Trustees were:Ahmed Mahomed Lockhat – FounderSuleman Mahomed Lockhad – Brother of FounderIsmail Mahomed Lockhat – Brother of FounderMahomed Ahmed Lockhat – Eldest son of Founder

Understand the history and achievements of Hajee Mahomed Lockhat Wakuf – Continuation …


• The objectives of the Wakuff as stated in the Notarial Deed of Trust was to “create a fund for charitable, educational and religious purposes to be applied in the Republic of South Africa, India, Makkah and Madinah.”

• Subsequent to this initial donation of 3000pounds, the prime

business property at 104/108 Commercial Road, Durban where Lockhat Bros. and Co. (Pty) Ltd. was located, was personally donated by the late Hajee A, M. Lockhat to the Hajee Ahmed Mahomed Lockhat in 1933. The two-fold benefit of this donation to the Wakuff was the acquisition of an asser and the resulting income generated from rentals by Lockhat Bros. and Co. (Pty) Ltd.



Management of Income after the death of the Founder •According to the Trust Deeds, the net income from the Trust properties was to be applied by the Trustees as follows:

1/8 for the benefit of the poor and madaris in the province of Natal.

1/8 for the benefit of the poor and madaris in Kathor, India.¼ for the benefit of the poor and madaris in Makkah and

Madinah. •The remaining 50% of the net income to be utilized for acquiring further immovable property.



Amendment to the Trust Deeds

•In 1964 an amendment was made to the original Trust Deed of 1933. Amendment was inevitable – since the Hajee A.M. Lockhat Wakuff was not exempted from donation tax unless income was utilized in the Republic of South Africa only.

•Other factors also impacted on this decision, namely, the total sum in accounts in Kathor, Makkah and Madinah and their change in economic conditions from 1930’s to 1960’s.



PROJECTS OF THE WAKUFF•Masjids

• Lockhat Masjid (formerly Ahmedia Masjid) built in 1942.• Masjid-e-Yusuf (Parlock).• Al-Ameen Masjid and Madrasah (Chatsworth) – Wakuff

provided financial assistance for the building. Also assisted with salaries for educators.

• Bagdadi Islamic Institute – Wakuff was the largest donor for the construction of the masjid and the madrasah. Wakuff has assumed total responsibility for the maintenance of the masjid-cum-madrasah.



• State-Aided Schools• Ahmedia State Aided School – built by the Hajee A.M.L

Wakuff in 1947. Besides the salaries of the secular educators, the Wakuff bore the entire cost of the maintenance of the school and salaries of the Islamic educators.

• Donations to the following state aided schools:• Orient Islamic State Aided School – Wakuff largest

donor (1959)• South Coast Madrasah School – (1947)• Anjuman Islam State-Aided School – (1953)



• Islamic Private Schools• With regard to the Islamic Private Schools, it is interesting to

note that the Hajee A.M.L. Wakuff provided free premises for the first Islamic Private School in KZN, namely, the former Lockhat Islamic College. They benefitted the use of the school for 14 years with a nominal fee of R200 a year.

• Crescent Girls’ High School (1998) – a non-profit private secondary girls’ school built and subsidized by the Hajee A.M.L. Wakuff.

• Al-Azhar School of Durban – established in 2000. Whilst the Al-Azhar of Egypt is responsible for the Islamic Education, the Hajee A.M.L Wakuff is responsible for subsidizing fees, major running costs of the school, provision of secular educators and implementation of the secular curriculum.



• Schools in Rural Areas• The Hajee A.M.L Wakuff has also been responsible for

the building of over 15 schools for the disadvantaged African communities in KZN.

• Amongst these schools is also the Lockhat Women’s Training Centre – Inanda which was officially opened by Dr. Buthelezi in 1997.

• Tertiary Institution – that have benefitted from the Hajee A.M.L

Wakuff are: - • The University of Kwazulu Natal (Westville)• M.L. Sultan Technikon• Cato Manor Technikon



• Islamic Educational Organization of Southern Africa (IEOSA)• IEOSA is the educational arm of the Wakuff. The rationale

for the establishment of the organization was to provide a structure, non-controversial effective Islamic Education. The team of 30 are responsible for teacher training, research and curriculum development. The number of madaris affiliated to IEOSA is 53. The IEOSA educational system and publications are being used internationally.

• Welfare Division – provides hampers and financial assistance to

the needy. • Bursaries – are provided at the tertiary level of education.



Sustainability of the Wakuff•Since inception, the Hajee A.M.L Wakuff engaged in various income generating activities to expand the income base of the Wakuff.•Amongst these projects was the building of a block of residential flats (in the year 1960) in Commercial Road, (THE WAKUFF BUILDING) that generates rental income for the Wakuff.•With a view of increasing the Wakuff income further, the Late Mr. Y.A. Lockhat build the LOCKHAT CENTRUM on the existing building site (104/108 Commercial Road) in 1981. To realize this costly project, the trustee loaned personal funds to the Wakuff. The project includes 2 arcades that run parallel to each other and provided the business sector with approximately 40 stores.•The success of this project motivated the Wakuff to establish yet another shopping centre in the CBD – the L.C.T. CENTRE (Lockhat Charitable Trust) in 1990.



The research conducted by the Islamic Development Group in Jeddah (Saudi Arabia) concluded on their findings of Awqaf in South Africa as follows: “With the exception of a few, most of the Awqaf institutions in South Africa are related to mosques and religious educational institutions. One of the few income generating Waqf institutions in South Africa is the Hajee Ahmed Mahomed Lockhat Wakuff established in Durban in 1933. This Waqf initiated the Islamic Educational Organization of Southern Africa (IEOSA) in 1985 to advance quality Islamic education to the community.”

End of Module 4


If you have any questions on this module, please contact your lecturer.

lesson 4 - waqf studies

Government & Nonprofit