Eidul Adha, a Muslim holiday

Eidul Adha, a Muslim global holiday

By Abdel Aziz Dimapunong

Imam, Masjid AlKhairi, Manila, Philippines

Today, December 30, 2006, is a Muslim holiday. The exact date is the corresponding date in the lunar Hijrah calendar which is the tenth day of the Islamic month of Dhul Hijjah. This holiday is called Eidul Adha to the Arabs, Eid-e Qurban for Persians and Kurban Bayrami for Turkish. The exact spelling is the corresponding Arabic script. If one has to search the Internet about it, the spelling in English could be Eidl Adha, Eid ul Adha, Eid al-Adha, or Eidul Adha.

In my country, the Philippines, Eidul Adha is recognized officially by the Government as a Muslim holiday. By virtue of a law which was recently signed by President Gloria Macapagal Arroyo, Eidul Adha is now a National Holiday in this country. It is among regular holidays under the Administrative Code. Before the law was signed, Eidul Adha used to be just a holiday for the Muslims only. Witnessed by Muslim legislators and diplomatic personalities from the Organization of Islamic Countries, President Gloria Macapagal Arroyo signed the law last November 13, 2002 at Malacanang Palace. The law also proclaims Eidul Fitr as a Muslim regular holiday in the same way as Eidul Adha. The Eidul Fitr takes its name from the Fitrah which is an obligatory religious Tax (Zakat) to be paid by all financially able Muslims. Fitra becomes due and obligatory upon sighting of the moon of the month of Shawwal and in the Hijrah calendar. Fitra is recommended to be paid before the prayer of Eidul Fitr.

Eidul Adha marks the completion of the annual hajj, the pilgrimage to the holy cities of Makkah and Madinah. On this occasion, I wish every Muslim a great holiday and I congratulate all who perform the annual hajj this year. At the end of the Hajj, Muslims throughout the world celebrate the holiday of Eidul Adha.

Eidul Adha is also known as the Festival of Sacrifice. The sacrifice is called Qurban. It lasts for three days and commemorates Ibrahim's (Abraham) willingness to obey God-Allah by offering to sacrifice his son, Ishmael. It was with a heavy heart that Abraham agreed to sacrifice his son but he was ready to show his loyalty to his Lord. The feeling of Abraham's son, Ishmael, was also the same as that of his father. Both of them were committed to follow the commandment of God-Allah. Abraham drew his knife to slaughter his son but just as the knife drew near, God-Allah intervened and Ibrahim's son was replaced by a sheep. Ibrahim and Ishmael were was so happy that they were relieved when they saw that it was a sheep that was slaughtered. Ishmael was safe. God-Allah had asked Ibrahim to sacrifice his son to test his faith in Islam and when Abraham proved that he was willing to do it, God-Allah did not need him to commit the slaughter of his beloved son. Being obedient to God-Allah, Ibrahim is described in the Holy Quran as follows: "Surely Abraham was an example, obedient to Allah, by nature upright, and he was not of the polytheists. He was grateful for Our bounties. We chose him and guided him unto a right path. We gave him good in this world, and in the next he will most surely be among the righteous." (Qur'an 16:120-121)

The Feast of Sacrifice re-enacts Ibrahim's obedience to God-Allah. It is done by pilgrims and all Muslims by sacrificing a cow, a ram, or a goat. The family eats about a third of the meal and donates the rest to the poor.

During the Hajj, the pilgrims perform rituals in remembrance and in commemoration of the trials and triumphs of Prophet Ibrahim, peace is on him.

Ibrahim’s trial was to face the command of Allah to kill his son, Ishmael, as a sacrifice. Upon hearing this command, he prepared to submit to Allah's will. When he was all prepared to do it, Allah revealed to him that his offer for sacrifice had already been fulfilled. He had shown that his love for his Lord was above all and everything else, that he would lay down his own life or his son in order to submit to God-Allah.

During the celebration of Eid al-Adha, all Muslims commemorate Ibrahim's trial by slaughtering an animal such as a cow, sheep, camel, or goat. The meat from the sacrifice of Eid al-Adha is mostly given away to others. One-third is for the family and relatives, two-thirds for others, especially to the poor. The act symbolizes a Muslim’s willingness to give certain things, in order to follow Allah's commands. It also symbolizes a Muslim’s willingness to give up one’s own bounties in order to strengthen ties of friendship and help those who are in need.

On the morning of every Eidul Adha, Muslims around the world attend morning prayers at their local mosques or any suitable places. Eidul Adha begins with a short prayer (Salat) followed by a sermon (Kutbah) that is delivered by the Imam. For the pilgrims in Makkah, the sermon is delivered from Mount Arafat. For others, prayers are followed by visits with family and friends, and the exchange of greetings and gifts.

The charitable practices of the Muslim community are demonstrated during Eidul Adha by the concerted effort to see that no impoverished Muslim is left without sacrificial food during this day. On his last pilgrimage, Prophet Muhammad, peace is on him, pronounced the final seal on the religion of Islam, coming immediately after the Day of Mount Arafat. The day before Eid al-Adha is the Day of Arafat' or the Day of Hajj when millions of Muslims make the journey to Mecca in Saudi Arabia to perform a pilgrimage of religious rites known as the Hajj.

Virtually all of the rites and rituals of Hajj are based on the actions of Prophet Abraham. These acts were re-implemented by Prophet Muhammad, peace is on him. Even the Kaa'ba, also known as Masjid El Harram, in Makkah was originally built by Abraham and his two sons. Masjid El Harram is now a huge complex. Within this complex Masjid is located a holy plinth to remind pilgrims of Prophet Ibrahim and Ishmael.

During Eidul Adha, Muslims greet each other by saying "Eid Mubarak". On this occasion, may I say Eid Mubarak to everyone.

Eidul Adha, a Muslim holiday

Eidul Adha, a Muslim global holiday

By Abdel Aziz Dimapunong

Imam, Masjid AlKhairi, Manila, Philippines

Today, December 30, 2006, is a Muslim holiday. The exact date is the corresponding date in the lunar Hijrah calendar which is the tenth day of the Islamic month of Dhul Hijjah. This holiday is called Eidul Adha to the Arabs, Eid-e Qurban for Persians and Kurban Bayrami for Turkish. The exact spelling is the corresponding Arabic script. If one has to search the Internet about it, the spelling in English could be Eidl Adha, Eid ul Adha, Eid al-Adha, or Eidul Adha.

In my country, the Philippines, Eidul Adha is recognized officially by the Government as a Muslim holiday. By virtue of a law which was recently signed by President Gloria Macapagal Arroyo, Eidul Adha is now a National Holiday in this country. It is among regular holidays under the Administrative Code. Before the law was signed, Eidul Adha used to be just a holiday for the Muslims only. Witnessed by Muslim legislators and diplomatic personalities from the Organization of Islamic Countries, President Gloria Macapagal Arroyo signed the law last November 13, 2002 at Malacanang Palace. The law also proclaims Eidul Fitr as a Muslim regular holiday in the same way as Eidul Adha. The Eidul Fitr takes its name from the Fitrah which is an obligatory religious Tax (Zakat) to be paid by all financially able Muslims. Fitra becomes due and obligatory upon sighting of the moon of the month of Shawwal and in the Hijrah calendar. Fitra is recommended to be paid before the prayer of Eidul Fitr.

Eidul Adha marks the completion of the annual hajj, the pilgrimage to the holy cities of Makkah and Madinah. On this occasion, I wish every Muslim a great holiday and I congratulate all who perform the annual hajj this year. At the end of the Hajj, Muslims throughout the world celebrate the holiday of Eidul Adha.

Eidul Adha is also known as the Festival of Sacrifice. The sacrifice is called Qurban. It lasts for three days and commemorates Ibrahim's (Abraham) willingness to obey God-Allah by offering to sacrifice his son, Ishmael. It was with a heavy heart that Abraham agreed to sacrifice his son but he was ready to show his loyalty to his Lord. The feeling of Abraham's son, Ishmael, was also the same as that of his father. Both of them were committed to follow the commandment of God-Allah. Abraham drew his knife to slaughter his son but just as the knife drew near, God-Allah intervened and Ibrahim's son was replaced by a sheep. Ibrahim and Ishmael were was so happy that they were relieved when they saw that it was a sheep that was slaughtered. Ishmael was safe. God-Allah had asked Ibrahim to sacrifice his son to test his faith in Islam and when Abraham proved that he was willing to do it, God-Allah did not need him to commit the slaughter of his beloved son. Being obedient to God-Allah, Ibrahim is described in the Holy Quran as follows: "Surely Abraham was an example, obedient to Allah, by nature upright, and he was not of the polytheists. He was grateful for Our bounties. We chose him and guided him unto a right path. We gave him good in this world, and in the next he will most surely be among the righteous." (Qur'an 16:120-121)

The Feast of Sacrifice re-enacts Ibrahim's obedience to God-Allah. It is done by pilgrims and all Muslims by sacrificing a cow, a ram, or a goat. The family eats about a third of the meal and donates the rest to the poor.

During the Hajj, the pilgrims perform rituals in remembrance and in commemoration of the trials and triumphs of Prophet Ibrahim, peace is on him.

Ibrahim’s trial was to face the command of Allah to kill his son, Ishmael, as a sacrifice. Upon hearing this command, he prepared to submit to Allah's will. When he was all prepared to do it, Allah revealed to him that his offer for sacrifice had already been fulfilled. He had shown that his love for his Lord was above all and everything else, that he would lay down his own life or his son in order to submit to God-Allah.

During the celebration of Eid al-Adha, all Muslims commemorate Ibrahim's trial by slaughtering an animal such as a cow, sheep, camel, or goat. The meat from the sacrifice of Eid al-Adha is mostly given away to others. One-third is for the family and relatives, two-thirds for others, especially to the poor. The act symbolizes a Muslim’s willingness to give certain things, in order to follow Allah's commands. It also symbolizes a Muslim’s willingness to give up one’s own bounties in order to strengthen ties of friendship and help those who are in need.

On the morning of every Eidul Adha, Muslims around the world attend morning prayers at their local mosques or any suitable places. Eidul Adha begins with a short prayer (Salat) followed by a sermon (Kutbah) that is delivered by the Imam. For the pilgrims in Makkah, the sermon is delivered from Mount Arafat. For others, prayers are followed by visits with family and friends, and the exchange of greetings and gifts.

The charitable practices of the Muslim community are demonstrated during Eidul Adha by the concerted effort to see that no impoverished Muslim is left without sacrificial food during this day. On his last pilgrimage, Prophet Muhammad, peace is on him, pronounced the final seal on the religion of Islam, coming immediately after the Day of Mount Arafat. The day before Eid al-Adha is the Day of Arafat' or the Day of Hajj when millions of Muslims make the journey to Mecca in Saudi Arabia to perform a pilgrimage of religious rites known as the Hajj.

Virtually all of the rites and rituals of Hajj are based on the actions of Prophet Abraham. These acts were re-implemented by Prophet Muhammad, peace is on him. Even the Kaa'ba, also known as Masjid El Harram, in Makkah was originally built by Abraham and his two sons. Masjid El Harram is now a huge complex. Within this complex Masjid is located a holy plinth to remind pilgrims of Prophet Ibrahim and Ishmael.

During Eidul Adha, Muslims greet each other by saying "Eid Mubarak". On this occasion, may I say Eid Mubarak to everyone.

Christmas Greetings

Greetings to everyone

Merry Christmas and a prosperous new year to all. May the New Year 2007 bring peace, happiness and brotherhood to everyone. May this New Year be the end of all wars on earth. And may this year convey joy to the world. Merry Christmas to Pope Benedict XVI and to all of Christendom.

Imam Abdel Aziz Dimapunong

International Islamic Council

for Civilian Relations

Growing travel restrictions

Growing travel restrictions

By: Abdel Aziz Dimapunong

In a memorandum dated last Friday, November 24, 2006, Justice Secretary Raul Gonzalez of the Philippines said he had received confidential information about illicit human trafficking of Indians using Manila’s international airport. Because of the report, the memorandum ordered all immigration and airport officials to monitor and conduct surveillance on the entry of Indians, Pakistanis and Afghans to this country.

In another airport only four days before the order in Manila, six Imams in USA were investigated by police and airport authorities in Minneapolis-St. Paul International Airport. The six Imams in USA were already aboard Flight 300 of US Airways when they were asked to leave the plane last November 20, 2006. This was a report featured by the Philippine Daily Inquirer last Wednesday, November 22, 2006, with a source from the Associate Press, Minneapolis.

According to the report, police assistance was called upon when the Imams of USA refused to leave when asked to do so by the captain and the airport security. When finally they were taken off the plane, they were investigated before being released. According to Omar Sahin, one of the Imams, they were humiliated “in a very disrespectful ways”.

According to the spokeswoman of the US Airways the incident was triggered by an anxious passenger who slips a note to the flight attendant, only raising (unfounded) concern. After the investigation, nothing wrong was discovered.

The Council on American Islamic Relations in Washington, through its spokesman, Mr. Ibrahim Hooper, expressed anger at the detention. In this same way, the Manila-based International Islamic Civilian Relations officially expressed today its disappointment with the captain and the flight attendants of Flight 300 US Airways.

Only one day before the Minneapolis incident, I wrote a blog about profiling Muslim identities. In that blog I wrote: Was Moses a Muslim? Yes, he was a Muslim. Non-Muslims call him Moses. The Muslims call him Musa Alaihi Salam. Many Muslims bear the name Musa. Many others are named Moses or Moshe. What difference does it make? What is in a name? And then I said that variations matter in some major cities of the world, more specifically inside international airports.

The incident at the airport reminds me of a joke about an immigrant at one of the free ports of North America when it was popularly known as the land of the free.

This is only a joke but I shall not deliver the punch line. At the beginning of its history North America was well known as a land of the free. Entry to this new world was sought after. It was then very easy to become an American citizen (Many Filipinos also became American citizens). In those days (according to this joke), only three questions were asked for an immigrant to enter into the land of the free and be among its citizens. The following is a transcript of one of those interviews. Again this is only a joke without a punch line.

The immigration officer asked an immigrant: “What is your name?” The immigrant replied, “My name is Abram.”

The officer said, “If you can answer just three questions, you become a citizen of North America, the land of the free”

First question: “Who was Christopher Columbus?” Abram replied: “Sir, he was Christoval de Colon, a maritime explorer.” The officer rephrased the question for clarity: Who was Christopher Columbus in relation to America. Abram replied: “Sir, Don Christoval Colon discovered America.” The officer replied: “That’s correct.”

Second question: “Who was George Washington? Abram replied: “Sir, George Washington was the first presidente of North America. He founded the Count”. “That is correct, “the officer said.

Final question. The officer said, “If you can answer this final question, then you are welcome to the land of the free. You become a proud American. You shall have your homestead as far and wide as your eyes can see. You will also have freedom of religion. You can be a Christian, a Mohammedan, a Buddhist, or whatever you choose.

The final question was: “Who was Abraham Lincoln?” Abram replied, “Sir, he is my namesake. He is Ibrahim or Abram for short. In my place, he is known as Abe de Linc.” The officer rephrased the question: “Who was Abe Lincoln to the Americans? Abram replied: “To be specific sir, Abe Lincoln declared on January 1, 1863 that all slaves are forever free. He made the Count free. ”That is correct, said the officer. He hugged Abram who just became a citizen in the land of the free. This is just a joke. It could have been true. Under present condition, it is just impossible to happen.

Who was Abram? It did not and still does not matter.

The Islamic Bank as a chartered bank

By: Abdel Aziz Dimapunong

Chancellor, Islamic Banking Research Institute

I have just uploaded a pdf file of an update (October 2006 Edition) of the Charter of the Amanah Islamic Bank of the Philippines. The file maybe downloaded with the following link.


http://www.keepmyfile.com/download/17ac5f1156861

Because the file is rather long, I am writing below only the introductory portion.


Introduction

Today, we face challenges that are rapidly expanding in the age of information technology. In order to capture the opportunities presented by this changing environment, we need to review and refresh so we can act and respond positively with global reach. The changes that we face today are so pervasive in the way they are taking place. It is driven by a force of extraordinary advances that reverberates globally through the World Wide Web. This is a force in Cyberspace that is transforming banking and commerce from conventional to e-commerce. The wind of change is blowing upon every business entity and regulatory agencies including Central Banks in some countries.

It is for this reason that we in the Islamic Banking Research Institute, and the Islamic Bank (Private) itself have decided to review and refresh the charter of the Al Amanah Islamic Investment Bank of the Philippines.

By way of review we recall that as early as 1993, we had to provide some footnotes to some provisions of Republic Act No. 6848, the charter of the Al Amanah Islamic Investment Bank of the Philippines. The first occasion presented itself when on June 2, 1992; a court order was erroneously issued by then Judge Zosimo Angeles of the Regional Trial Court of Makati, Branch No. 58. This was a Temporary Restraining Order (TRO) in civil case No. 92-1487, a result of a baseless complaint filed by directors of the abolished Philippine Amanah Bank who permanently lost their jobs.

The court order enjoined both parties to the case as cited above to observe the status quo then prevailing. At that point in time, there existed two banks in that legal controversy. They were as follows:

1. One was the defunct Philippine Amanah Bank created under Presidential Decree No. 264 as amended which a board consisting of six (6) members who were to serve until the new Islamic Bank shall have been organized was then managing. The Philippine Amanah Bank was abolished and its charter, PD 264, was repealed entirely by Republic Act 6848, the charter of the new Islamic Bank.
2. The other one was the newly organized Al Amanah Islamic Investment Bank of the Philippines created under Republic Act No. 6848. This bank was organized on April 28, 1992, just one month before the court order. It was being managed by a Board of Directors under the leadership of Abdel Aziz Dimapunong, founding chairman and chief executive officer, and Macapanton Abbas, Jr, Ali Malambut, Grande Mitmug Dianaton who were elected pursuant to the provisions of Republic Act No. 6848.

The court order was wrongfully issued by then Judge Zosimo Angeles. It was ordered lifted by the High Court of Appeals in its Decision in Case No. CA-GR No. SP No. 28445, Abdel Aziz Dimapunong vs. Judge Zosimo Angeles. The Decision was promulgated January 13, 1993. The Judgment was made final and executory on June 16, 1993. Farouk Carpizo appealed it to the Supreme Court in UKD-11290 but the highest court ordered it TERMINATED, there being no merit in the appeal.

Although the court order was issued in error and was lifted one year later by another court order in the form of a Decision, both the lower court order and the high court order had some effects on some provisions of RA 6848. For one, the lower court order that enjoined a status quo prevented a turnover of the assets and liabilities of the abolished Philippine Amanah Bank to the Islamic Bank.

The Decision of the Court of Appeals also clarified the fact that there are private stockholders in the Islamic Bank. Among those named in the Decision were: Macapanton Abbas Jr., Ali Malambut and Grande M. Dianaton. These stockholders were in the minority in 1992. But a few years later, they became the majority and controlling stockholders. On the other hand, the National Government of the Philippines, owing to its mounting deficits, failed to invest subscribe to any shares of stocks of the Islamic Bank.

There were other major occasions when annotations and commentaries on Republic Act 6848 became so necessary. Footnotes were not enough when the Philippine legislature put an end to the Old Central Act, Republic Act No. 267. Needless to say, the end of the Old Central Bank Act washed all the powers of the old Monetary Board away. Congress enacted a new Central Bank Act, Republic Act No. RA 7653. This new law created the Bangko Sentral Ng Pilipinas to replace the old Central Bank of the Philippines. Under this new Central Bank Act, the powers of the Monetary Board were diminished.

On May 23, 2000, the Philippine legislature also put an end to the General Banking Law, Republic Act No. 337. Needless to say, all the powers of the Monetary Board that were derived from the General Banking Law were also washed overboard. Congress enacted a New General Banking Law of 2000; Republic Act No. 8791 which greatly enhanced the powers of the Islamic Bank. Section 71 provides that:

“The organization, ownership and capital requirements, powers, supervision and general conduct of business of Islamic banks shall be governed by special laws.”
So, today, the General Banking Law of 2000 no longer governs the Islamic Bank. The general banking law governed other banks. This means that the Islamic Bank is an autonomous bank, in the same way that its area of responsibility that is the Autonomous Region in Muslim Mindanao (ARMM) is also autonomous by provision of law.

Since the organization of the Islamic Bank in 1992, the Monetary Board, which never had a Muslim member, had been very much remiss in fulfilling its duties to the Islamic Bank. However, since 1992, the Islamic Bank has been gaining powers and exemptions by newly enacted laws in the Philippines.

It is with hope that this writing will shed light to some still lingering issues about the Islamic Bank. And, after we are refreshed with the implementation and development of Islamic banking in the Philippines, we hope to stir more awareness and further interest on the concept of Islamic banking in general.

Ahmad Muhammad Ali, banker par excellence

By: Abdel Aziz Dimapunong
Chancellor, Islamic Banking Research Institute
Founding Chairman, Amanah Islamic Bank

----------------------------------------------------

Dr. Ahmad Muhammad Ali

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There is no doubt, Dr. Ahmad Muhammad Ali (photo above), president of the Islamic Development Bank, is one of the founders of international Islamic banking. He certainly is a banker par excellence. Last year, Dr. Ahmad Ali was a recipient of an award by the King Faisal Foundation. This award was the International Prize for Service to Islam. The award was announced by Prince Khalid Al Faisal, director of the King Faisal Foundation in a ceremony held at the Al-Khozama Center last January 25, 2005. As winner of the award he received a cash endowment of SR750, 000 (about $200,000), a certificate outlining his work and a 22-carat gold medallion to commemorate the occasion. Dr. Ahmad Muhammad Ali was awarded the prize in recognition for his achievements in the field of Islamic banking. As president of the Islamic Development Bank since its inception in 1995, he has synchronized the conformity of banking transactions with Islamic laws and jurisprudence. As one of the founders of Islamic banking, he has set an example of success in Islamic banking and finance on an international level.

The Islamic Banking Research Institute of the Philippines has recognized three founding fathers of international Islamic banking, namely: His Highness, Prince Muhammad Faisal Al-Saud of the Faisal Islamic banking group, His Excellency, Saleh Abdullah Kamel of the Al Baraka banking group, and His Excellency Ahmad Muhammad Ali of the Islamic Development Bank of the Organization of Islamic Conference. In the early 1970s, these three founding fathers of Islamic banking and finance begun conceptualizing, scheming, and constructing what is now popularly known as Islamic banking, investment and finance. Considering their highly educational background and religious commitment to Islam, they may have thought of Islamic banking and finance even in their school days in the 1960s. The Islamic Banking Research Institute has no doubt these three founding fathers of Islamic banking are bankers par excellence.

This issue is focused on Ahmad Muhammad Ali, president of the Islamic Development Bank. The IDB operates on Islamic banking principles. One of the pioneering Islamic banking institutions, this bank was conceptualized in 1973 and actually founded in October 1975 upon the recommendation of the Organization of Islamic Conference and its members which were then 43 member states. Its initial capital was furnished by the governments of Saudi Arabia, Kuwait, Bahrain, Pakistan., Bangladesh, Turkey, and Indonesia. The Bank has financed 387 operations totaling $3.917 billion in 39 member states, and made a profit of $26 million in 1982-83. Since then, IDB and Muhammad Ali have been making steady progress.

Dr. Ahmad Muhammad Ali was born in 1934 at Madina Al Munawara, one of the two holy cities of Islam located in the Kingdom of Saudi Arabia. He obtained his B.A. Commerce degree at the Cairo University, Arab Republic of Egypt in 1957. He obtained his M.A. degree at the University of Michigan, USA. He also earned his degree in Public Administration in the United States in 1962. Thereafter, he earned his Ph.D. degree in Albany, also in USA. He pursued more education and obtained also his degree in Public Administration in the United States in 1967.

Upon completion of studies, Dr Ali was appointed Deputy Rector of the King Abdulaziz University in the Kingdom of Saudi Arabia. He served in this capacity from January 1, 1967 to January 1, 1972. Then he was elevated to the position of Deputy Minister of Education in the Royal Government of the Kingdom, a position he held from January 1, 1972 to January 1, 1975.

Dr. Ali started his first stint as President of the Islamic Development Bank on January 1, 1975 up to January 1, 1993, a period of eighteen years.

He was Secretary General of the Muslim World League based in the Kingdom of Saudi Arabia from January 1, 1993 to January 1, 1995.

Then he made his second stint as President again of the Islamic Development Bank from January 1, 1995 up until the present, a period of twelve years. He, therefore, has served the Islamic Development Bank and performed Islamic banking in a period of thirty years.

Dr. Ahmed Mohamed Ali wrote many articles and working papers on Islamic economics, banking and education. He has an IDB Prize Winners' Lecture Series publication titled “Role of Islamic Banks in Development."

His memberships to prestigious organizations include the King Saud University Council. He was a member in 1980. He was also member of the King Abdulaziz University Council where he was a Rector in 1972. These were in addition to being a member of the Council of the King Fahd University of Petroleum and Minerals. He was also member of the Imam Mohammed Ben Saud University in 1990.

The Islamic Development Bank is a pioneer in the field of Islamic banking. Dr. Ahmad Muhammad Ali is also a pioneer president of the Islamic Development Bank. That makes him among the pioneers in the field of Islamic banking.

The IDB was organized as a multi-lateral financial institution. It is a political organization having been established in pursuance of the Declaration of Intent issued by the Conference of Finance Ministers of Muslim Countries that was historically held in Jeddah on December 1973. The Inaugural Meeting of the Board of Governors took place in July 1975, and the Bank was formally opened on October 1975.

Up to the end of June 1992, the authorized capital of the Bank was two billion Islamic Dinars. Since July 1992, in accordance with a Resolution of the Board of Governors, it became six billion Islamic Dinars, divided into 600,000 shares having a par value of 10,000 Islamic Dinars each. Its subscribed capital also became four billion Islamic Dinars. The board of governors at its annual meeting held in Algeria decided to increase the authorized capital of the Bank form ID six billion to ID fifteen billion and the subscribed capital from ID 4.1 billion to ID 8.1 billion.

The Bank's principal office is a landmark in Jeddah, Kingdom of Saudi Arabia. Two regional offices were opened in 1994; one in Rabat, Morocco, and the other in Kuala Lumpur, Malaysia. In July 1996, the board of Executive Directors also approved the establishment of an IDB Representative Office at Almaty, Kazakhstan. This regional office serves the IDB member countries in Central Asia. The office became operational in July 1997. The Bank also has field representatives in eleven member countries, namely: Indonesia, Iran, Kazakhstan, Libya, Pakistan, Senegal, Sudan, Gambia, Guinea Bissau, Mauritania and Algeria.

The Islamic Development Bank is authorized to accept deposits. It mobilizes these deposits into Shari’a compatible transactions. It is also charged with the responsibility of assisting in the promotion of foreign trade, especially in capital goods, among member countries. Furthermore, it provides technical assistance to member countries by way of extending training facilities for personnel engaged in development activities in Muslim countries to conform to the requirements of Shari’a laws and jurisprudence.

The avowed purpose of the Bank is to foster the economic development and social progress of member countries and Muslim communities in non-member countries in accordance with Shari’a laws and jurisprudence

The official functions of the Islamic Development Bank include participation in equity and venture capital. It also provides loans for productive projects and enterprises. It provides financial assistance to member countries in other forms for economic and social development. The Bank is also required to establish and operate special funds for specific purposes including a fund for assistance to Muslim communities in non-member countries.

As president of a multi-lateral banking institution, Ahmad Muhammad Ali is well abreast of developments in other nations, especially in those countries that are seeking for membership in the bank. Along this pursuit, Ahmad Muhammad Ali led the so-called Tashkent Conference in the Republic of Uzbekistan on September 2003. The Conference was held following the Independence of this new Republic. Dr. Ali noted and stressed in that Conference that for the years of Independence of Uzbekistan, it has achieved acceptable successes in all branches of economy. “We are glad to see the success of Uzbekistan in the sphere of industrial development”, he said “Any development of a country serves the improvement of people’s welfare in the end”, - he added.

Addressing a group of journalist in the Tashkent Conference, Ahmad said “Our bank is working mainly for the realization of concrete projects. When together with Uzbekistan’s partners we determine these or those sphere of cooperation, the Islamic Development Bank will allot the necessary sum for the projects realization. Priority direction of our cooperation will be such spheres as transport communications, the small and medium size business. We are going to take an active part in the construction of the railway, connecting Uzbekistan with Iranian ports”.

On that year, the Republic of Uzbekistan became the 55^th member of the Islamic Development Bank. The present membership of the Bank consists of 56 countries. It is required that the prospective member country should be a member of the Organization of the Islamic Conference. Every member is also required to pay its contribution to the capital of the Bank and be willing to accept such terms and conditions as may be decided upon by the bank.

Ahmad Ali and the Islamic Development Bank respond to disasters and natural calamities. Last October 8, 2005, the world has witnessed a devastating earthquake in Pakistan. On October 24, 2005, Ahmad Ali was in Karachi, Pakistan, a member country. While in Pakistan, the IDB president, along with the Organization of Islamic Conference Secretary General Ekmeleddin Ihsanoglu, met President Pervez Musharraf where the Pakistani president called for setting up a permanent disaster relief fund at the OIC level to deal with natural disasters such as the October 8 earthquake. As president of the Islamic Development Bank Ahmad Muhammad Ali has responded by saying that the bank will give $256 million for the rehabilitation of the earthquake-hit areas of Pakistan. The IDB president said part of the money would be a loan and part of the money would be a grant.

On the next visit of Ahmad Muhammad Ali in Pakistan early this year, the grant and the loan for the rehabilitation of damages caused by the earthquake were raised to $ 500 million as requested by the government of Pakistan. During the visit of Ahmad Ali, the Prime Minister thanked the IDB President for the support and assistance provided by the Islamic Development Bank for the reconstruction and rehabilitation of earthquake affected areas.

Pakistan has been the primary mover and promoter of a genuine and complete banking and insurance system. This is perhaps the reason why the IDB president appreciated the reforms agenda of the government and said that “Pakistan has a special place in the Muslim world and it is playing an important role in strengthening the Muslim Ummah (world community of Muslims).

This year the Prime Minister of Pakistan Shaukat Aziz asks IDB to take part in consortium formed to finance the construction of water reservoirs in Pakistan. The Minister and Ahmad Ali met last May, 11, 2006 during a ceremony of Pakistan Development Forum 2006, at the Convention Center.

Talking to the President of IDB, Dr. Ahmad Muhammad Ali, the Prime Minister appreciated support provided by IDB to Pakistan in its development process saying that IDB has consistently played a vital role in Pakistan’s economic development which is deeply appreciated all across the country. "IDB is our development partner and Pakistan values and welcomes the advice given by the bank", said the Prime Minister.

The Prime Minister also acknowledged the role played by the Islamic Development Bank in the development of Muslim countries. He said the Ummah can take justifiable pride that the IDB has evolved into an internationally recognized and reputable institution under the inspiring and highly competent leadership of Dr. Ahmad Muhammad Ali.

Dr. Ahmad Muhammad Ali assured the Prime Minister of the Bank’s support in the construction of water reservoirs. Furthermore, “the IDB, he said, “is also considering financing projects in railways and energy sector in Pakistan.”

The able leadership of Dr. Ahmad Muhammad Ali as president of the Islamic Development Bank has been very reassuring not only to member countries but to the entire Muslim communities around the Muslim world. Presently, Dr. Ahmad Muhammad Ali, a banker par excellence, is still president of the Islamic Development Bank.

“Ahmad Muhammad Ali, banker par excellence”, by Abdel Aziz Dimapunong is part of a larger book entitled “The world of Islamic banking” by this same author. Mr. Dimapunong is chancellor of the Islamic Banking Research Institute. He is also founding chairman of the Amanah Islamic Bank of the Philippines. The site, www.dimapunong.blogspot.com includes research papers that Abdel Aziz Dimapunong has written in the field of Islamic banking, finance, and investments during his career. Dimapunong is currently working as an independent Consultant/Trainer on Islamic banking, finance, Zakah, Awqaf, Islamic Inheritance,, and other aspects of Islamic transactions. Dimapunong may be contacted by email at abdeldimapunong@yahoo.com.ph. October, 2006. All rights reserved.

Muhammad Faisal, banker par excellence

By: Abdel Aziz Dimapunong
Chancellor, Islamic Banking Research Institute
Founding Chairman, Amanah Islamic Bank

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His Highness, Prince Muhammad Faisal Bin Al Saud (photo above) of the Faisal Group of banks is truly an Islamic banker par excellence. This is the finding of the Islamic Banking Research Institute in its search for personalities who could have been the founding fathers of Islamic banking. The other excellencies in banking are His Excellency, Sheikh Saleh Abdullah Kamel of the Al Baraka Group, and His Excellency, Dr. Ahmad Muhammad Ali, President, Islamic Development Bank.

We shall stand corrected if there is any other founder that we might have missed. We are of the opinion that to be dubbed as among the founders of Islamic banking, the banker should have been involved in the developmental stage of Islamic banking in the 1970s. And it should not be later than December 31, 1979. This is because by the onset of the 1980s, Islamic banking had already taken roots, and some Islamic banks and financial institutions were already stable.

This issue is focused on His Highness, Prince Muhammad Al Faisal Al Saud, son of the late King Saud. Writing about His Highness has been made easy by recent developments in the world of Islamic banking and finance. During the recent 31st Annual Meeting of the Board of Governors of the Islamic Development Bank in the state of Kuwait last May 31, 2006, a ceremony was held to award the IDB Prize in Islamic Banking and Islamic Financial Services for 2005. The recipient of the award was Prince Muhammad Al Faisal Al Saud. It was received for His Highness’ by Mr. Muhammad Abdul Rahman. The Prize was awarded to His Highness in appreciation for his distinctive efforts in the field of developing the concept and business of Islamic financial services.

The recognition of Prince Muhammad Faisal Al Saud by the Islamic Banking Research Institute is reckoned basically by his pioneering effort in the establishment of Islamic banking in the 1970s. That refers to the establishment of Faisal Islamic Bank of Sudan and the Faisal Islamic Bank of Egypt. On the other hand, the prize awarded him by the Islamic Development Bank was specific recognition for his involvement in Islamic Banking and Islamic Financial Services for year 2005. It was also a specific recognition for his role in having firmly established the first Islamic financial institution, namely Dar Al Mal Al Islami.

In the world of global Islamic banking, there is no mistaken that the name “Faisal” refers to His Highness, Prince Muhammad Faisal Al Saud. Furthermore, in this global industry, the name “Faisal” has come closely to the meaning of Islamic financial institution.

After three decades of developments, Islamic banking evolved from one with transparency in ownership into one with fortified layers of stockholdings that provides shields of protection to shareholders. Simply stated, the owner of a bank no longer has to be the chairman. He does not have to be a member of the board. He does not have to be visible. This is partly a result of changing environment in the new millennium. Therefore, in our write up we do not go further into piercing the veil of corporate existence. We are not engaged in accounting and auditing.

Faisal today in Switzerland. What used to be known as Faisal Finance (Switzerland) SA is now known as Faisal Private Bank (Switzerland) SA. This is according to a Press Release of the Faisal Private Bank (Switzerland) SA, dated October 3, 2006. This was made official by a decision of the Swiss Federal Banking Commission that awarded a full banking license to Faisal Finance (Switzerland) and renamed it as Faisal Private Bank (Switzerland) SA, making it the first Islamic private bank in Switzerland.

Faisal Finance (Switzerland) SA used to be a securities dealer duly licensed, regulated and supervised by Swiss authorities. .

According to the press release, the principal shareholder of Faisal Private Bank Switzerland is the Bahrain-based Ithmaar Bank, which is regulated by the Central Bank of Bahrain. It further says that Ithmaar Bank recently launched its public offering on the Bahrain stock exchange last February 2006. As a result, US$360,000,000 worth of shares was issued as fully paid-up capital of Ithmaar Bank. This bank is the former Faysal Investment Bank of Bahrain, a provider and manager of Sharia compliant investment products in the Middle East. Ithmaar acquired 79.6% ownership in Faisal Finance (Switzerland) S.A.

The recent launching of Faisal Private Bank Switzerland is a recent landmark development. It does not belong to the organizational history of Islamic banking and finance. The ownership of the original Faisal Finance has changed. However, the press release claimed that Faisal Private Bank Switzerland is part of the Group which pioneered the Islamic banking and finance industry. According to Marco Rochat, Chief Executive Officer of Faisal Private Bank (Switzerland) SA, Faisal Private Bank Switzerland is “the synthesis of over 15 years of experience in the Swiss private banking arena with a distinctive ethical heritage”. This, he said, “will enable us to continue delivering an innovative platform for an international clientele which trusts our private bankers because they are also accountable for their values.”

Faisal Private Bank Switzerland is being managed by a management team that includes renowned names as PricewaterhouseCoopers, KPMG, DMI, Leman Capital and SGS. The team is headed by Khalid Abdullah Janahi as chairman of the Board. He has expressed his confidence in the success of the Faisal Private Bank which he said will be guided by the principles of the Sharia

Faisal’s Dar Al Mal AI lslami Trust. – The Faisal group has long been based in Geneva. In 1981, Prince Faisal organized Dar Al Mal Islami Trust with $1 billion authorized capital and administered from Geneva. Soon, this amount rose to a $3.5 billion Trust. Prince Faisal had established the Dar Al Mal Al Islami in Geneva as a financial services conglomerate. The objective of Prince Faisal was to foster the spread of Islamic banking across the Muslim world. With its precious metal as part of its business, it made a net profit of $7.9 million in 1982. The operations of Dar Al Mal Islami cover the Bahamas, Bahrain, Guinea, the Isle of Jersey, Luxembourg, Niger, Senegal, Sudan, Switzerland, the United Arab Emirates, and the United Kingdom. The office of Dar Al Mal Islami in Bahrain handles investment in the Gulf area. Its office in the Bahamas handles international operations. By March 1984 the Faisal group had almost $400 million investments.

Faisal in Sudan - Sudan In 1974 encouraged foreign capital investment. Foreign banks were urged to establish joint ventures in association with Sudanese capital. Banking transactions with foreign companies operating in Sudan were facilitated so long as they follow the rulings of the Bank of Sudan. The monetary consideration played a big role. Investors were required to transfer a minimum of £Sd3 million into Sudan. Several foreign banks took advantage of this open door policy, most notably the Faisal Islamic Bank. The principal investor of this bank was the Saudi prince, Muhammad Faisal Al Saud.

Consequently the Faisal Islamic Bank of Sudan was officially established in 1974 pursuant to the Faisal Islamic Bank Act. Some members of the Muslim Brotherhood in Sudan and its political arm, the National Islamic Front played a prominent role on the board of directors of the Faisal Islamic Bank of Sudan. This strengthened the bank’s position in Sudan.

The Faisal Islamic Bank of Sudan enjoyed privileges denied other commercial banks. This includes full tax exemption on assets, profits, wages, and pensions. The investors were also guaranteed against sequestration and nationalization. Moreover, these privileges came under government’s protection from 1983 onward as it begun applying the Islamic doctrines to the Sudanese way of Islamic banking. The appeal of Islamic banking in Sudan coupled with government support and patronage enabled the Islamic banks to acquire about 20 percent of Sudanese deposits. Politically, the popularity and wealth of Islamic Banks have provided a financial basis for funding Islamic policies of the Sudanese government.

By September 1984, there were seven Islamic banks in Sudan that are based on the principles of Islamic banking. Paramount of these was the Faisal Islamic Bank of Sudan.

Faisal in Egypt. In the 1970s. Prince Muhammad Faisal Al Saud had been so busy establishing Islamic banks and financial institutions around the world. I had mentioned in my previous articles about these banks. The pioneers include the Faisal Islamic Bank of Egypt which is now performing very well. This bank now has over half a million investment accounts and its total assets amount to more than 2 billion U.S dollars. It had consistently updated itself particularly in terms of capitalization. It has now an authorized capital stock of US$ 500 million of which US$132 million worth of equity has been subscribed and fully paid up.

Boosting its resources, the Faisal Islamic Bank of Egypt has also built up alliances with several banks like the Commercial International Bank of Egypt. This is a financial institution that is engaged in wholesale banking and financial brokerage. The bank's personal banking services include cash management, direct services, credit and automated teller machine cards, electronic banking and issue management. Its institutional banking services provide corporate, investment, correspondent banking, treasury services and special finance programs, brokerage services cover equities trading, global depository receipt trading, technical analysis and other related services. Also, through its Commercial International Life Insurance Company, the bank offers life insurance products and services.

The Faisal Islamic Bank of Egypt is also in alliance with the National Societe Generale Bank, MISR International Bank, Egyptian American Bank, Housing & Development Bank, Delta International Bank, El Watany Bank of Egypt, Egyptian Gulf Bank, and Piraeus Bank Egypt.

Faisal in the Bahamas. From the Middle East, Prince Muhammad Faisal, crossed the Pacific Ocean, and established firmly the first Islamic financial Institution in the Bahamas. It is known as Dar Al Mal Al Islami. This house of Islamic funds in the Bahamas performed not only Islamic banking but Islamic Da’wah as well. Many employees of this bank, natives of the Bahamas Island, became Muslims as a result of their association with Prince Faisal and their employment in Dar Al Mal Al Islami. I happen to have met some of them some years ago.

Faisal across the Muslim world. In the 1970s, the name Faisal has become a trademark in the area of Islamic banking. This name is borne by Masraf Faisal Al Islami Bahrain, Masraf Faisal Al Islami Niger, Masraf, Faisal de Guinea, Masraf Faisal de Senegal, and the Faisal Finance Institution Istanbul. By 1983, Prince Faisal played a major role in the establishment of more Islamic investment and -insurance companies including the Faisal Islamic Bank in Bahrain, the Kibris Islamic Bank in Cyprus, the Islamic Bank in Vienna, Austria, and other banks in Senegal, Niger, and the Bahamas.

With the establishment of these Islamic banks and financial institutions around the world, from Egypt to Geneva and the Bahamas, there is no doubt Prince Muhammad Faisal bin Al Saud is among the founders of Islamic banking.

In a broader since, Prince Muhammad Faisal also deserves the award of being the Father of Islamic Economics in modern society.

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This article: “Prince Muhammad Faisal, banker par excellence” is part of a larger book entitled: “The World of Islamic Bankers” by Abdel Aziz Dimapunong, Chancellor, Islamic Banking Research Institute and founding chairman of Amanah Islamic Bank of the Philippines. 2006. All rights reserved.

Saleh Abdullah Kamel, banker par excellence

By Abdel Aziz Dimapunong
Chancellor, Islamic Banking Research Institute

The Islamic Banking Research Institute of the Philippines has been on the search for personalities who might have been the founding fathers of Islamic banking that now spans around the globe. Undeniably the name of His Highness Prince Muhammad Al Faisal Al Saud comes to mind. For one he is the founder of the Dar Al Mal Al Islami (House of Islamic Funds). There is also no question about H. E. Sheikh Saleh Abdullah Kamel as being one of the founders. One cannot escape the fact about H.E. Dr Ahmed Mohamed All, President of the Islamic Development Bank, the bank of the Organization of Islamic Conference. Here we are talking about the big leaguers in global banking. It is difficult to find words to describe their ranking in this arena. We just have to settle for the term Bankers Par Excellence. It is awesome to find their achievements in banking and business. They are empire corporate builders.

Sheikh Saleh Abdullah Kamel, banker par excellence.

In this issue we focus our concern on H.E. Sheikh Saleh Abdullah Kamel, banker par excellence. He has been one of the better known philanthropists and bankers in the Kingdom of Saudi Arabia.

Born in Mecca in 1941, Sheikh Kamil owes his success to his extensive preparation and the hard work he has put through the years in a variety of jobs and business pursuits.

After finishing his bachelor’s degree in Commerce, he started as an advisor in the Ministry of Finance. Fired by his enthusiasm to participate in the development process of the Kingdom of Saudi Arabia in another capacity, Sheikh Saleh Kamil went to business in a variety of ways.

Sheikh Saleh plays an important role in the everyday life of Saudi citizens. A prominent figure in the economic and political affairs of his country, his chain of business interests have links across Europe and span the Atlantic oceans to the United States and goes still farther to the Bahamas.

In the Kingdom, Sheikh Kamil’s name is a household word. Outside of the Kingdom, some of his company nameplates are also household words. In my small hometown in Muslim Mindanao, far away from the Kingdom of Saudi Arabia, the names of Dallah AVCO and SAPTCO ring a bell to workers from Saudi Arabia.

Saleh Abdullah Kamel is well known in the banking industry. But aside from being a banker and investment guru, he has also been in various business endeavors. The product lines and services of his various companies affect almost every citizen in the Kingdom. These are in airport maintenance contracts, pre-fab house construction, publishing and printing concerns, marketing, air-conditioning, hotel operations and a host of other establishments.

In Egypt, he was substantially involved in tourism, public information, investments houses and banking. He was a co-founder of the Faisal Islamic Bank of Egypt. This is the bank that could have been the first Islamic bank. Sheikh Saleh Kamel founded the Faisal Islamic Bank of Egypt together with another banker par excellence by the name of His Highness, Prince Muhammad Faisal bin Al Saud.

Faisal Islamic Bank of Egypt may have been the first Islamic Bank. The bank was conceptualized at the beginning of the 1970s although it actually started operations on May 7, 1979. It was His Royal Highness Prince Muhammad Al-Faisal Al-Saud who submitted the idea of Islamic banking before a number of Egyptian businessmen. The idea was welcomed and the Bank was incorporated under Law No. 48 of 1977. Faisal Islamic Bank was updated under law no. (42) of 1981 and under law (97) of 1996. During these years its authorized capital had been raised to 500 million dollars of which 132 million dollars had been subscribed, issued and fully paid up capital. The Egyptian nationals hold 44% of the equity capital while the rest are being held by foreign stockholdings. Faisal Islamic Bank of Egypt now manages over half a million investment accounts, and its total assets amount to more than 2 billion U.S dollars.

In the Sudan and Jordan, Saleh Kamel was also active in Islamic banking institutions, investment and financing firms. He was a founding member of the Faisal Islamic Bank of Sudan.

Sheikh Kamel has been involved in vital trading, financing, and other concerns in Greece, USA, the Bahamas and other countries.

One of the greatest Muslim philanthropists, Sheikh Kamel was a leading associate of the Islamic Solidarity Fund Board and the Organization of Islamic Conference of Foreign Ministers.

His involvement in so many industries and or establishments indicates his deep commitment to the development of the Kingdom of Saudi Arabia and the prosperity of Muslim countries. He has been president of the Dallah Establishment; partner and president of the Dallah AVCO Trans Arabia; owner of Dallah International; chairman of Dallah International Holding Co. Inc. Sheikh Kamel has been chairman of the following companies: Dallah Industries Company, Textile and Ready Made Garment Company, Saudi Irish Dairy Company, Arab Media Company, Saudi Pre-Fab and Precast Co. (SAPRECO), Fast Contracting Company, Dallah –LIL-Mavani Company, The Concrete Company, AMARTECH, The Saudi Air-conditioning Company, The Islamic Arab Insurance Company, Okaz Distribution Company, Food International Company.

Saleh Kamel was also Executive member of the Board of the Saudi Public Transport Co. (SAPTCO),

He was also founding chairman of the Jordanian Islam Bank for Finance and Investments.

He was either founder member or founding chairman of the following companies: Tihama Company for Advertisement, Public Relations, and Marketing Studies, Dar Okaz for Printing and Publishing, Okaz Establishment for Press and Publishing, Okaz Libraries and Company, The Saudi Hotel and Resort Areas Company, The Yemeni Kuwaiti Real Estate Development Co., Sana’a, The Arab Hotels Company, Sana’a, Shobel, Switzerland and England, Arab Investment Company of Egypt, Arab Union Investment Company of Egypt. Eastern Company for Production and Distribution, Sharja.


In the 1990s, Sheikh Kamel was still as active as the beginning of Islamic banking in the 1970s. He was founding chairman of the Al Tawfeek Company for Investment Funds Ltd. This company was incorporated in 1992 with the objective of providing medium and long term finance for emerging companies, investment and infrastructure development projects. It is among the pioneers in Sharia compliant investments.

Al Tawfeek Company for Investments participates in international and Arab based equity portfolios. It is active in financial syndication by acting as agent as well as underwriter. It has an authorized capital US $500 million of which US $304 million has already been paid up and outstanding. It has a record of having issued fund capital amounting to over US$ 1.5 Billion.

In summary, through its many subsidiaries, Saudi Arabia-based Dallah al Baraka Group provides banking, investment, insurance, and lending services to businesses located throughout the Muslim world. Its subsidiary Al Baraka Investment and Development has been an influential fund in Islamic finance for more than 20 years. It has a record of having managed assets exceeding $4.4 billion. All of these are to the credit of our banker par excellence, the Saudi billionaire, Saleh Abdullah Kamel and his family. The Al Baraka Group is the holding company for many businesses involved in trading operations, heavy industry, real estate, media, and finance in more than 40 countries.

As of year end 2004, the Dallah Al Baraka group employs 38,250. The chairman and president is still H.E. Saleh Abdullah Kamel, the banker par excellence.

Pope Benedict XVI regrets

By: Abdel Aziz Dimapunong

Imam, Masjid Al Khairi

Alhamdulillah. Praise is to God-Alone who gives the temporal power of reason to whom He pleases, and for as long or short as He pleases. And peace is to Prophet Muhammad, his companions, friends and family. And peace to everyone on this occasion of Ramadhan 1427 A.H

Last September 12, 2006, Pope Benedict XVI delivered a lecture at Regensburg University where he was quoted to have said “offensive remarks about Islam and Muslims”. It was clear that the pope linked the religion of Islam to violence. The Muslims reacted faster than they did on the issue of Danish cartoons. It was immediately unleashed with fury. By Friday, September 15, 2006, Palestinians protestors marched in the Gaza Strip waving the flags of Hamas and chanting Allaho Akbar (Allah is Great) Their prime minister, Ismail Haniya criticized the pope's comments, saying: "These remarks go against the truth and touch the heart of our faith.”

The following day, thousands of Muslims have held demonstrations around the world. They protested against the remarks made by Pope Benedict about Islam and violence. Aljazeera reported that two churches in the West Bank city of Nablus were hit by firebombs. The targets were a Roman Catholic Church and an Anglican church. In Gaza City, four other firebombs exploded at a centre run by the city's oldest Christian church.

Five days after he made his remark, Pope Benedict XVI said he “sincerely regretted” that he may have offended the Muslim world. This partly calmed down the outrage of some Muslims although some still want more than being sorry. Among those that reacted positively were the Muslim Council of Britain, Britain’s Ramadhan Foundation, the British Muslim Initiative, and the Islamic Society of Britain.

In making his remark, Pope Benedict XVI wishes to set back the time to the Byzantine days of conflict. Nobody seems to understand why he quoted Emperor Manuel II Paleologus who was clearly anti-Islam. Why Joseph Ratzinger had to say those hurting words befuddled so many. I personally do not wonder. It is no surprise to me because the Holy Qur’an has the explanation. Why wonder so much? Benedict is already 79 years old in the Gregorian calendar. By reckoning of the Hijra Islamic calendar, Benedict is already about 82. He is already an octogenarian. In Islam, Muslims who live during and after the Prophet Muhammad, peace be on him, are told to expect a life expectancy of only 60 years. Any longer life maybe considered as a chance to live and believe. It is also of common knowledge that after the age of 60, a person’s intelligence and reasoning starts to decline. At the age of over 70, this decline may amount to simple forgetfulness or memory lapses. Reaching the age of 80 and above, amnesia or schizophrenia may set in. By the standard of Islam, 82 is an extremely old age. By Freudian theories, a person over 80 is susceptible to commit a Freudian slip.

The Holy Qur’an speaks of declining capacities of man including physical strength, intellectual and reasoning abilities. And this may be the relevant message for everyone. In the popular Sura Ya Siin is stated: “If we grant long life to any, we cause him to be reversed in nature. Will they not then understand?” (Qur’an: Verse 68: Surah 36). Seriously, I would like to call this as the verse of diminishing capacity of man. This verse is particularly relevant considering that Archbishop Dominique Mamberti, the Vatican foreign relations secretary, is insisting on an interfaith dialogue “based on sound intellectual foundation” and that he would like the dialogue to be so personal that “the thoughts of Pope Benedict XVI should be seen in that context”.

Yousef Ali, the famous translator of the meanings of the Qur’an had this comment on the verse of diminishing capacity:”As a child, the powers of mind and body are still undeveloped. As he grows, they grow, and certain moral qualities, such as courage, daring, the will to conquer, unfold themselves. In extreme old age these are again obscured, and a second childhood supervenes”. In the end man loses all of his memory – even his life.

Therefore, considering the age of the pope, we may just consider his remarks as a slip-up

According to Sigmund Freud, this condition results from the operation of unconscious wishes or conflicts and can reveal unconscious processes. Besides, the pope has already said he is sorry. He already expressed his “sincere regrets”.

There is another reason why we should let go the remarks of Pope Benedict XVI. Today is the start of Ramadhan fasting, although some will begin the fast tomorrow. My family and I are already fasting at this time of writing. This is a holy month when it is required of every Muslim not to be hostile to anyone. Yes, even when a Muslim is challenged to a fight, he should just say: “I am fasting”. And yes, even when he is challenge again, he should just say again: “I am fasting”.

As for me, I am fasting.

Abdel Aziz Dimapunong

Imam, Masjid Al Khairi

Manila, Philippines

Rejoinder on Islamic Bank in RP

By: Abdel Aziz Dimapunong Founding chairman, Amanah Islamic Bank

This is a rejoinder to a malicious posting on the website at www.islamicbank.com. The letter opinion was allegedly written by Vicente S. Aquino, director of the Office of Special Investigation of the Bangko Sentral ng Pilipinas. It was written six years ago but it is still appearing on the Internet in the said website. This could only mean that it is a smear campaign against my name.

Because I believe in the freedom of expression, I did not mind the letter response of the director of the BSP special investigation. As a journalist, it is my understanding that issues should be presented fairly. For this reason, I am presenting herewith my side of the issues.

The letter opinion was captioned “BSP on Islamic Bank in RP”. And it goes to saying that it was “in response to the letter-opinion of a certain Mr. Abdel Aziz Dimapunong, who claims to be chairman of Al Amanah Islamic Investment Bank of the Philippines. “ I am this same person, and it is true that I had an opinion letter that was published in the Opinion section of the Philippine Star on August 18, 2000. That was six years ago! This was also published by the Manila Bulletin on August 23, 2000. The Philippine Star and the Manila Bulletin are the two leading newspapers in the Philippines. They are also accessible through the Internet.

Since director Vicente Aquino was responding to my letter-opinion, I feel it is but fair to present also a copy of my letter-opinion. The following is a reprint of a six year old letter opinion that is being brought back to life by somebody in the Internet. It should really be considered as part of the history of the Islamic Bank. My published letter-opinion was captioned by the Manila Bulletin as “Islamic Bank clarifies ‘unfounded charges’, and entitled “BSP suit vs. bank clarified” by the Philippine Star. It was to the version of the Philippine Star that Mr. Aquino wrote a respond. A verbatim reprint of my opinion-letter as published by the Philippine Star follows

“In behalf of the thousands of shareholders of the Al Amanah Investment Bank of the Philippines, I would like to request your reputable newspaper to allow me to correct and update some of the information cited in the article of Marianne V. Go entitled “BSP files suits vs. ‘fake’ Islamic Bank Owners,’ published last August 7, 2000 in the Business Section of the Philippine STAR.

I know for a fact that your newspaper has always maintained its editorial objectivity and sense of fairness in all your dealings with the public and it is on this spirit that I enumerate the following facts to the readers of the Philippine Star to know both sides to the issues surrounding the Islamic Bank.

The article is correct in stating there is only one Islamic Bank in the Philippines and it is the Al Amanah Islamic Investment Bank of the Philippines which was created by Congress through RA 6848 and signed into law by President Corazon C. Aquino on January 26, 1990. That same law, in Section 52 abolishes the Philippine Amanah Bank which was created during Martial Law.

The existence and legality of the Al Amanah Islamic Investment Bank of the Philippines which I use to lead as its first Chairman and Chief Executive from 1992 to 1995 has been upheld by the Court of Appeals decision (CA-GR No. 28445-SP) dismissing the suit filed by Roberto de Ocampo, et. Al., questioning the legality of the Islamic Bank. A concurring decision on July 19, 1993 by the Supreme Court in Case UDK-11290 terminated with finality all legal actions questioning the implementation of RA 6848. The so-called Amanah Islamic Investment Bank of the Philippines which is supposed to be operating out of Pacific Star Building in Makati City is fiction created by the officials of the abolished Philippine Amanah Bank which has no assets, shareholders and banking operations having vacated its Pacific Star office since 1996.

As to the so-called BSP “suit”, a careful reading of the RA 6848 would show that our use of the word “bank” is organic to the charter granted by Congress for the Al Amanah Islamic Investment Bank of the Philippines to operate under Shariah law and exempting it from the usual regulations applicable to banks in this country. BSP cannot supersede an act of Congress and this is the heart of our counter-affidavit which we filed with the Department of Justice in response to the affidavit of complaint filed by two lowly staff members of Bangko Sentral which was the “suit” mentioned by the article.

For the information of your readers, the matter is only under preliminary investigation; no suit has been filed in court either by DOJ nor the BSP against Islamic Bank. Moreover, the Deputy Governor of BSP, Mr. Alberto Reyes, is not listed as party to the complaint, nor is the BSP an official complainant in the DOJ preliminary investigation. There is also no Monetary Board resolution supporting the filing of the said complaint which really makes us wonder about Mr. Reyes’ statements mentioned in the article. The actual affidavit of complaint was not against’ the group led by Abdul Gaffoor Ashroff’ but essentially about the Islamic Bank’s use of the word ‘Bank’ without BSP authorization which the Congress of the Philippines granted in RA 6848.

May I also correct the deception that Mr. Gaffoor or any single group owns the Islamic Bank. The Al Amanah Islamic Investment Bank of the Philippines has thousands of shareholders and Mr. Gaffoor is just one of them. It is our collective decision and recognition of Mr. Gaffoor’s commitment and vision for the people of Mindanao that made possible his election and induction as President of the Islamic Bank in our general shareholders meeting last August 04, 2000 at the Intercontinental Hotel, Ayala Avenue, Makati City. The Al Amanah Islamic Investment Bank of the Philippines has laid out in that meeting its plans and programs to uplift the livelihood and economic plight of our Muslim and Christian communities in Mindanao and other parts of the country. We have the resolve and resources to back up that mission to bring prosperity and with it real peace in Mindanao.

Our best wishes to your highly credible and outstanding newspaper.

(Sgd) Abdel Aziz Dimapunong

Issues about Amanah Islamic Bank

By Abdel Aziz Dimapunong
Chancellor, Islamic Banking Research Institute
Founding Chairman and Chief Executive Officer, Amanah Islamic Bank

In the Philippines, there are three legal issues about the Islamic Bank that are still being debated on. These controversies have been investigated by the Department of Justice upon an alleged complaint of the Monetary Board. The complaint, however, was not actually initiated by any member of this Board. The low ranking lawyers of the Bangko Sentral who filed the case had to admit in the course of investigation that they were actually acting on their own private capacities – and not on behalf of the Monetary Board. The case was filed in 1999. Until this date the complainants failed to secure the Resolution of the BSP Monetary Board authorizing the filing of a case in its own name. In the absence of the required Resolution, the lawyers who filed the case are said to be misrepresenting the Monetary Board. It has been almost seven years and the case is unsettled. In fact, the source of the complaint, Farouk Carpizo died some years ago. The once Deputy Governor of the Bangko Sentral who initiated the malicious complaint is no longer with the Bangko Sentral

In the meanwhile, malicious publicity about the case is still on the Internet. It is for this reason that the Islamic Banking Research Institute has been requested to shed light on the lingering controversy. The Institute is the only private entity that is held to be the most authoritative source of information about Islamic banking in the Philippines.

The issues are as follows:

1) Whether or not the Al Amanah Islamic Investment Bank of the Philippines needs a license to be issued by the Monetary Board.

The unauthorized Bangko Sentral lawyers charged the officers of the original Islamic Bank for not having been granted a license by the Monetary Board. The Islamic bankers maintained that they do not need a license from the Monetary Board.

2) Whether or not the Monetary Board has the prerogative not to recognize the legitimacy of the Islamic Bank

The unauthorized lawyers claimed that the original Islamic Bank is not recognized by the Bangko Sentral Ng Pilipinas. The officers of the original Islamic Bank maintain that the Bangko Sentral Ng Pilipinas has no choice but to recognize the Islamic Bank.

3) Whether or not the Monetary Board has the power to qualify or disqualify directors of the Islamic Bank.

The unauthorized lawyers claimed that the officers of the original Islamic Bank have not been qualified by the Monetary Board. The officers of the original Islamic Bank asseverate that they do not have to pass through the Monetary Board concerning the elections of directors of the Islamic Bank

All of the foregoing issues are discussed below. They are argued upon not in the legalese format of the justices of the Supreme Court but only in layman’s terms. They are presented just in the way of a blogger in Cyberspace. After all, the case that was allegedly filed by the Monetary Board in 1999 was not authorized by the Monetary Board. The case was not acted upon by any Court of law. The case is buried in what the law profession calls ‘archive’. It seems that nobody wants to stand for the malicious complaints. It is already about seven years since then. And even for any reason, the malicious complaint breaks into any honorable court, and the founders of the Islamic Bank welcome it in that unlikely event.

After our research and review, we asseverate as follows:

1) The Al Amanah Islamic Investment Bank of the Philippines does not need a license to be issued by the Monetary Board of the Bangko Sentral Ng Pilipinas in order to operate as a bank.

2) The Monetary Board has no prerogative to disregard the legitimacy of the Islamic Bank

3) The Monetary Board has no power to pass upon judgment on the qualifications and or disqualifications of directors of the Islamic Bank.

DISCUSSION

Undoubtedly, the Monetary Board has authority to regulate and supervise the Islamic Bank. This mandate, however, is subject to certain legal limitations. These restrictions are set by laws and jurisprudence. Some limitations are very much obvious even to laymen.

Obviously, the Monetary Board has no power to, revise, modify or reject any provisions of law such as those provided in the charter of the Islamic Bank. Obviously, it is rather wrong for any officers of the Bangko Sentral, including the Monetary Board to require the Islamic Bank an authority to operate as Islamic Bank. The charter of the Islamic Bank, RA 6848, already authorized it to operate as Islamic bank. The charter is very clear. It provides:

“SEC. 50. Statutory Articles of Incorporation. - This Act, upon its effectivity, shall be deemed accepted for all legal intent and purposes as the Statutory Articles of Incorporation of the Al Amanah Islamic Investment Bank of the Philippines; and that notwithstanding the provision of any existing law to the contrary, said Islamic Bank shall be deemed registered and duly authorized to do business and operate as an Islamic Bank as of the date of approval of this Act.” [Emphasis mine]

Another limitation of the powers of the Monetary Board is the fact that it has no legislative authority. It has no power of prosecution. The Supreme Court of the Philippines had already defined certain forbidden grounds in the case of Reformina vs. Tonol, Jr., L-59096, Oct. 11, 1985. In this case, the Supreme Court rules: “The Monetary Board may not tread on forbidden grounds. It cannot rewrite other laws. That function is vested solely with the legislative authority. It is axiomatic in legal hermeneutics that statutes should be construed as a whole and not as a series of disconnected articles and phrases. In the absence of a clear contrary intention, words and phrases in statutes should not be interpreted in violation from one another, xxx”

The Monetary Board has no authority to rule on matters of intra-corporate controversy among shareholders and investors of the Islamic Bank (Such as the case of Dimapunong Group vs. Carpizo Group). Matters of intra-corporate controversies are already assigned by law to the Board of Arbitration of the Islamic Bank. Arbitration is clearly stated in the charter and even in the Rules and Regulation of the Bangko Sentral Ng Pilipinas. It does not appear from the new Central Bank Act, the new General Banking Law of 2000, and other banking laws in the Philippines that the Monetary Board has the authority to proclaim who among contending directors are legitimate and who are bogus. If the controversy does not fall within the jurisdiction of the Board of Arbitration, then it should be under the regular courts pursuant to the Securities and Regulation Code, RA 8799.

Is also does not appear from the new Central Bank Act and the new GBL of 2000 that the Monetary Board is part of the judicial branch of government. It has also no power of a fiscal under Philippine jurisprudence. In the words of the Hon. Supreme Court of the Philippines: “The Central Bank is a government corporation created principally to administer the monetary and banking system of the Republic, not a prosecution agency like the fiscal’s office. Being an artificial person, the Central Bank is limited to its statutory powers and the nearest power to which prosecution of violators of banking laws maybe attributed is its power to sue and be sued. But this corporate power of litigation evidently refers to civil cases only.” (Damaso P. Perez vs. the Monetary Board, G.R. No. L-23307, June 1967)

In relation to the Islamic Bank, the limited supervisory power of the Monetary Board is tokenized by Republic Act 6848. This was so because the authority and influence of the Monetary Board are limited only to its jurisdiction in the Philippines. On the other hand, the Islamic Bank was conceptualized to be an international bank. Its charter provides for Series “C” shares for foreign investors, equivalent to forty (40%) percent of its authorized capital stock (Sec. 8, RA 6848).

To assure foreign investors, the charter provides “protection against nationalization, sequestrations, or expropriation proceedings”. Thus section 10 of the charter provides: “… the provisions of the Investment Code on the basic rights and guarantees of investors are made applicable to the commercial operations of the Islamic Bank in respect to repatriation or remittance of profits from investments, and to protection against nationalization, sequestrations, or expropriation proceedings. Any proceedings of judicial or administrative seizure may not be taken against the said property or investment except upon a final court judgment.” Section 10 of the charter is restated in the BSP Implementing Rules and Regulations under section 11.

For more attraction to foreign investors, the charter also provides that the board of directors of the Islamic Bank may sit as a board of arbitration. This provision is also found in the BSP Rules and Regulations These provisions on arbitration also offer an international appeal to foreign stockholders and investors. This is because, as early as the 1950’s, foreign arbitration as a system of settling commercial disputes was recognized when the Philippines adhered to the United Nations” Convention on the Recognition and the Enforcement of foreign Arbitral Awards of 1958” under the 10 May 1965 Resolution No. 71 of the Philippine Senate, giving reciprocal recognition and allowing enforcement of international arbitration agreements between parties of different nationalities within a state. [Cited by the Supreme Court in the case of Del Monte Corporation-USA, vs. Court of Appeals, Judge Bienvenido L. Reyes, et al. (G.R. No. 136154, February 7, 2001)

Clearly, the Islamic Bank was intended to be the Philippines’ entry to the world of global banking. This is why the charter provides the Islamic Bank with so much legal leverage. The Islamic Bank is not just a bank in the ordinary sense. Aside from a bank pursuant to its charter, it is also an Investment House pursuant to PD 129, and it is also a Venture Capital Corporation pursuant to PD 1688 (Section 17, RA 6848). Should it operate as a venture capital corporation, the Islamic Bank would be under the supervision of the Securities and Exchange Commission – rather than the BSP.

The Islamic Bank is even allowed by its charter to deal with governments of other nations. The law provides under Sec, 11 that “… Under special circumstances in which the Board of Directors considers it advisable to promote or facilitate Islamic banking business and commercial operations, the Islamic Bank may seek financing from governments, organizations, individuals or banks…” This mandate of the charter is also restated under Section 12 of the BSP Rules and Regulations. Stated in other words, the Islamic Bank may seek financial assistance from sovereign countries, including the so-called “super powers”. The Islamic Bank may seek financial assistance from the governments of the United States, Canada, Australia, United Kingdom, Japan, Saudi Arabia, and others. There is no limit under the charter. For this purpose, therefore, the Islamic Bank may have its representatives to any of these countries, subject to their respective laws.

The Islamic Bank is a chartered bank. This means that its Articles of Incorporation is not a mere agreement among corporators and incorporators. It means that the charter is a law, i.e. RA 6848. In the Philippines, there are only two banks with charters of their own. These are: 1) the Bangko Sentral Ng Pilipinas that is chartered by the New Central Bank Act, RA 7653, and 2) the Al Amanah Islamic Investment Bank of the Philippines that is chartered by RA 6848. Like other legislative acts, charters have the full force of the law. Violation of the Central Bank Act is a violation of law. In like manner, violation of the charter of the Islamic Bank is a violation of law. No one is exempted from the law, not even the governor of the Bangko Sentral.

The Islamic Bank charter shall remain to be a law even now that the Islamic Bank has been privatized. This is an explicit official opinion of the Secretary of Justice in the Philippines [Opinion No. 42, Opinion of the Secretary of Justice 2001. Confirmation that RA No. 6848, the Charter of Al-Amanah Islamic Investment Bank of the Philippines (Islamic Bank), remains in effect if the bank is privatized, unless said law is repealed by Congress.] This is another guarantee to the stockholders, domestic and foreign investors.

That the Islamic Bank, as part of the banking and financial system, should have international features is reiterated in the new GBL 2000 when it provides and declares, as a matter of policy, that the state shall promote this system to be “globally competitive.”

Indeed, even the mandate of the Monetary Board to formulate the rules and regulations was envisioned by Congress to be of an international character, regulation being the basis of supervision. Thus, the law provides: “The Monetary Board of the Central Bank of the Philippines shall formulate the necessary rules and regulations to carry out the provisions of this Charter… and to supervise the operation of the Islamic Bank in accordance with the universal principle of the Islamic Shari'a. (Sec. 43, RA 6848)

The Islamic Bank is also mandated to employ foreign experts, agents and representatives. SEC. 40 provides that “the Islamic Bank may employ foreign nationals in supervisory, technical or advisory positions for a period not extending five (5) years, extendible for limited periods upon the recommendation of the Governor of the Central Bank.

While the Monetary Board has the power to regulate (i.e. promulgate rules and regulation) and supervise (i.e. monitor) the Islamic Bank, The charter, makes it very clear that not all of the provisions of the Central Bank Act (now the New Central Bank Act) and the General Banking Act (now the New General Banking Law) are applicable to the Islamic Bank. That is one of the legal mechanics of tokenism. In reality, only provisions of special laws are applicable to the Islamic Bank (Sec. 71, new GBL 2000).

There is one more issue that is building up. Why would not anyone touch the case? Is it a Pandora’s Box?

This article entitled “Issues in the Islamic Bank” Sept.2000 Ed., by Abdel Aziz Dimapunong, is a property of the Islamic Banking Research Institute. 2006 All rights reserved.