The role of Islamic governance in the reinforcement waqf reporting: SIRC Malaysia case

Abstract

Purpose Waqf has the quality of perpetuity so waqf properties cannot be sold, bought or given as a gift to others. Therefore, it is necessary to make sure that the property is fully used and properly managed by the Malaysian Islamic councils. To properly manage these properties, it is essential for the councils to have a proper reporting. Unfortunatley, this is not the case in the present situation for waqf. It was found that there is a lack of reporting on waqf matters. The purpose of this paper is to explore how the Islamic governance can contribute to the sufficient and adequate of waqf reporting. Design/methodology/approach This paper described what is being practised at present for waqf reporting. A series of Islamic governance literature was proposed in reinforcing waqf reporting. Findings This paper fulfils a gap in prior research by discussing several systems in Islamic governance to achieve transparency in waqf reporting. The findings of this paper may provide a significant contribution to any organisation that act as a trustee for waqf. Practical implications This paper provides an opportunity for further theoretical approach in defining and describing the role of governance in the reinforcement of waqf reporting. The paper has recommended several strategies towards better governance in Islamic council, and these suggestions can be offered to the councils for improvement. Social implications This research will be of interest to policy makers, especially Government and State Government. Given the current debate in Malaysia on the most appropriate forms of regulation for the Islamic sector, this study aims to provide valuable insights into the role of Islamic governance in the system of regulation. Originality/value This paper examined several governance system in Islamic governance to be applied in any Islamic organisation. This paper specifically deals governance issue that should be practised by present councils to prevent lack in waqf reporting. This system discusses the ways Islamic councils should perform since the system was originally implemented by a previous, distinguished caliph, Umar Al-Khattab.

Critical assessment of Islamic endowment funds (Waqf) literature: lesson for government and future directions

“… Research on accountability of waqf and a comparison with similar instruments such as endowment funds are needed. Daud (2019) It requires Islamic governance to ensure waqf report transparencies. Nahar and Yaacob (2011) Yaacob and Nahar (2017) Waqf accountability in management, accounting practices, and reporting in the context of Malaysia, although it exists, needs improvement to ensure high-quality reports.…”

“…(2019) Jalil et al. (2019) Accountability Accountability Masruki and Shafii (2013) Daud (2019) Nahar and Yaacob (2011) Yaacob and Nahar (2017) Ihsan and Septriani (2016) Ihsan et al. (2011) Ihsan et al.…”

“…For the future, this study recommends the introduction of accounting standards that are suitable for waqf institutions. Daud (2019) showed the importance of Islamic governance waqf reporting on the issue of transparency. This study recommends a few strategies for improving the governance of Islamic institutions.…”

“…Lessons from these studies are related to the importance of specifically complying with waqf accounting reports. Accountability in reporting is vital for the waqf institution as an aspect of transparency ( Nahar and Yaacob, 2011 ; Yaacob and Nahar, 2017 ; Masruki and Shafii, 2013 ; Daud, 2019 ). Transparency is not a contemporary issue ( Ihsan et al., 2011 , 2017 ; Yaacob et al., 2015 ; Azmi and Hanifa, 2015 ) but, rather, has been accomplished in the past ( Ihsan and Septriani, 2016 ).…”

Perceptions of Waqf Reporting Practices by State Religious Islamic Councils

“…An implication for waqf accountants is to seek greater council accountability. To enable the councils to become more socially responsive, the practitioners should be aware of and concerned to fulfill the obligations and duties to wider society (Daud, 2019).…”