TOWARDS PROVIDING THE BEST SHARĪ’AH GOVERNANCE PRACTICES FOR WAQF BASED INSTITUTIONS

Abstract

Waqf is the donation for the sake of Allah (s.w.t). Historically, it is
proven that society can benefit from waqf assets. Waqf assets can be
used for religious purposes like building mosques, public health,
transportation and education and others. However, due to the limited
regulatory framework and control over waqf institutions, there are
many undesirable issues regarding the Waqf management authority.
Most of the issues are due to inadequate management of waqf and
their accountability towards the donors and beneficiaries. If these
issues continue, the waqf institutions will have a negative public
image and undermine the objective of the waqf leading people
hesitant to donate to waqf. Thus, this paper highlights the negative
issues in the waqf institutions and proposes the need for Shari’ah
governance. This paper proposes that Sharī‘ah governance practices
for waqf institutions should be based on trust, accountability, God
consciousness, hisbah, and mutual consultation. It is believed that
this paper will alert the respective authorities and waqf management
to issue a Sharī‘ah governance framework.