It is not permissible for you
to forgive the right of the institution on this driver, because you are representatives of needy people, so you are supposed to act on their behalf, only in a way that that achieves their interests. (Part No. 14; Page No. 268) It is also not permissible for you to give him Zakah (obligatory charity) or any of the money belonging to the institution for him to pay the compensation that it is due from him, because this is not in the interests of the institution, and because Zakah cannot be paid to someone who owes the payer money for them to settle the debt. And Allah knows best. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.