The employee who transfers the salaries of the employees to their bank accounts
All praise be to Allah Alone, and peace and blessings be upon the Last of the Prophets. (Part No. 11; Page No. 107) The Permanent Committee for Scholarly Research and Ifta' has examined the Fatwa request submitted to His Eminence, the Grand Mufty by His Excellence Shaykh
Salah ibn Muhammad Al-Budayr,
the judge in the Supreme Court of
no. 4705, dated 12/8/1419 A.H. Attached is the Fatwa request that is submitted by some person and that is referred to the Committee by the Secretariat General of the Council of Senior Scholars, no. 5186, dated 18/8/1419 A.H., which reads:Allah (Exalted be He) says:
O you who believe! Be afraid of Allâh and give up what remains (due to you) from Ribâ (usury) (from now onward), if you are (really) believers.
There is also a Hadith related by
Avoid the Seven Destructive Sins.
The Hadith mentions consuming Riba (usury) as one of these sins. There is also a Hadith related by
Abu Dawud stating:
Allah has cursed the consumer of Riba, its payer, one who records it, and the two witnesses to it.
The question is: I am an official in the Department of Personnel Administration in a public sector. Salaries of employees in this sector are sent to a checking account in a national bank. We were given orders by higher authorities that if an employee in the administration applies to this bank for a personal loan, (Part No. 11; Page No. 108) the Personnel Administration (responsible for paying out salaries) hands the beneficiary (the borrower) a letter signed by the Personnel manager addressed to the bank (lender) to the effect that the administration has no objection in this regard pursuant to the agreement held with the bank. Thus, the administration transfers the beneficiary's salary to the bank so as to deduct the loan installments during the period designated for repayment. It is no secret that all loans given by such banks are interest-bearing loans. We ask Allah the Most High, the Exalted to guard you and us against committing sins. Our question is: Are we as sinful as them for signing the letters? Is doing so considered of those who record Riba accursed in the Hadith quoted above? Please, be informed that I, as an official, advise everyone not to do so as it is prohibited, but it is all in vain. I hope that Your Eminence will answer my question.
Having examined the Fatwa request, the Committee gave the answer that doing so is impermissible as it entails a usurious transaction and involve cooperation to indulgence in it. Undoubtedly,
Allah has prohibited all types of Riba and seriously warned those who deal in it. Riba includes interest-bearing loans, whether borrowed from a bank or otherwise. Furthermore, the Prophet (peace be upon him) cursed the consumer of Riba, its payer, one who records it, and the two witnesses to it. In a broader sense, the Prophet (peace be upon him) cursed those who deal in Riba as well as those who serve as helping factors therein. Allah (Exalted be He) says: (Part No. 11; Page No. 109)
...but do not help one another in sin and transgression. And fear Allâh. Verily, Allâh is Severe in punishment.
Therefore, it is obligatory on all of you to beware of committing acts forbidden by Allah, advise each other (against it), and notify senior officials about those who do not accept the advice and who continue dealing in usurious transactions, so that they may be deterred.May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.