ZAKAT abuse is far wider than what has just been reported in the media

Murray Hunter
Apr 23, 2026


ZAKAT abuse is far wider than what has just been reported in the media

Many Muslims remain in dire poverty in Perlis while NGOs collect money in the name of Zakat, and religious department elites make lavish overseas trips





Zakat monies used to buy the best while there are poor and destitute Muslims in Perlis who dont have enough money to buy milk for their children.



Just recently, the Selangor Malaysian Anti-Corruption Commission (MACC) arrested Fakhruddin Abd Karim along with several other individuals, including the Deputy Chairman of the Hulu Selangor NGO IKRAM, on suspicion of involvement in the embezzlement of zakat funds amounting to approximately RM230 million.

In the operation, MACC also seized 18 luxury vehicles, including a Porsche and a Mercedes, as well as houses and properties worth approximately RM11 million and various other movable property including cash and branded watches. In addition, MACC also froze 33 bank accounts totaling approximately RM120 million.

Other reports say the MACC had been investigating this case since 2009.

Media reports have just exposed the above scandal connected to IKRAM NGOs and a handful of individuals that have been living extravagant lives through Zakat monies collection. This has been made possible where some states have been appointing NGOs as Zakat collection agents on behalf of states, where the NGOs collect large commissions.

For Perlis the NGO IKRAM is firmly part of the state’s zakat management system is seen not just as an implementer, but also in a complex position - as a collector, recipient and distributor of zakat funds, in addition to the commissions they collect. Other states have other types of agreements.

This is occurring all over Malaysia. For example, in the structure permitted by the Perlis Islamic Religious and Malay Customs Council (MAIPs), IKRAM is given the space to collect zakat and at the same time receive up to 50 percent of the collection to distribute itself under the category of asnaf fi sabilillah. Technically, this model is legal from a governance perspective. However, from a public trust perspective, it raises much bigger questions.

It appears that IKRAM has not only expanded its zakat collection operations through, but also developed other entities, including IKRAM Hulu Selangor, companies affiliated with Pengkalan Sutramas Sdn. Bhd. (PSSB) and Ihsan Care Berhad (ICB).


More Zakat abuses

These are the only groups Zakat can be used for:

The Poor (Al-Fuqara / Fakir): This includes people with little or no income or assets who cannot meet basic needs (food, shelter, clothing, etc.). They are in severe poverty.

The Needy (Al-Masakin / Miskin): Those who have some income or resources, but it is still insufficient to cover essential living expenses. They are not as destitute as the poor but struggle to get by.

Zakat Administrators / Collectors (Al-Amilin / Amil): People officially appointed to collect, manage, and distribute Zakat funds. A portion of Zakat can cover their salaries or operational costs.

Those Whose Hearts Are to Be Reconciled (Al-Mu’allafatu Qulubuhum / Muallaf): New Muslims (converts), potential converts, or individuals whose hearts need to be inclined toward Islam. This can include support to strengthen their faith or integration into the Muslim community.

Those in Bondage / Captives (Ar-Riqab): Traditionally for freeing slaves or captives. In modern contexts, this is often interpreted as helping those in situations of modern-day slavery, human trafficking, or severe oppression to gain freedom.

Those in Debt (Al-Gharimin / Gharimin): People burdened with debt incurred for legitimate reasons (e.g., medical emergencies, basic needs, or unavoidable circumstances) who cannot repay it without falling into hardship. Zakat can help settle such debts (not for extravagant or sinful debts).

In the Cause of Allah (Fi Sabilillah): This broad category includes efforts for the promotion and defense of Islam, such as supporting Islamic education, dawah (propagation), building or maintaining mosques/schools, jihad in a defensive/just sense (according to classical views), or community welfare projects that strengthen the faith and ummah. Interpretations vary by scholars and institutions.

The Wayfarer / Stranded Traveler (Ibn As-Sabil / Ibnu Sabil): Travelers who are cut off from their resources, stranded, or unable to continue their journey due to lack of funds. This includes emergency help for transport, food, or shelter.

While Zakat is being used for the above purposes, religious department leadership over the years has interpreted the possible uses of Zakat to include “study visits” to the MENA on so-called official visits staying at five-star hotels.





Zakat comfort for ‘religious officials’

Another use of Perlis Zakat monies is to fund a “fifth-column” within Malaysian society. Many within the Alumni are highly intelligent, articulate, well educated, well connected, and don’t necessarily disclose their true beliefs and inclinations in the interests of exerting influence over the ideas of others. This group also protects the image of the movement, and according to an inside informant, every member of the Alumni is given an allowance of RM5,000 per month, increasing over time to propagate the faith, primarily funded by Zakat and topped up with Saudi monies until this source ran dry. This is in addition to the salaries they earn in their employment.

Many professionals are members of Ikram and get their orders to operate as a clandestine network in government.

The use of Zakat has not escaped the auditor. The 2018 Auditor General’s Report has given early warning of weaknesses in the management and distribution of zakat in Perlis. So much is suspicious. The audit highlights the need for closer monitoring of the effectiveness of distribution. This raises critical questions as to how far the 60 per cent of funds returned to agents such as IKRAM actually reach the deserving beneficiaries, and to what extent are they used according to the priorities set?

The victims are Muslims in poverty

However, nothing ever happened. Muslims are being cheated out of their Zakat funds and allocated to people through sophisticated collection and allocation systems that are totally opaque. These issues are not restricted to only Perlis. There are many NGOs involved in Zakat funds over the country.