Financial Control Between Rashidun Caliphs and the Late 11Th Century
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FINANCIAL CONTROL BETWEEN RASHIDUN CALIPHS AND THE LATE 11TH CENTURY BASSEM ISMAIL University of Airlangga E-mail: [email protected] HAMIDAH University of Airlangga E-mail: [email protected] Abstract Many modern concepts of financial control and its types that are now adopted have already existed in the Islamic state from Prophet Muhammad message through the Rashidun Caliphs and then the Umayyad and Abbasid through establishing Baitul Mal. This article try to investigate the concept of financial control and types in Islam and the historical development of financial control in Islam. Also clarify the principles of financial control in Islam. The research based on the descriptive approach through the use of scientific studies which dealt with the subject of research, in addition to the historical approach through the use of historical evidence in the way enhancing the opinions presented by the research in the rooting of its themes from the Islamic point of view. This paper give an attention to the behavioral principle and self-control of individuals when working in different areas of life in general and financial in particular, as they have direct causes of increased efficiency and effectiveness financial control system (FCS). Keywords: Baitul Mal, Financial Control, Prophet Muhammad, Rashidun Caliphs INTRODUCTION to be taken in order to achieve an efficient and The existence of efficient and effective FCS effective financial control system different in any organization is important for success this organizations. If we look back at our Islamic organization and achieving its objectives, there history, we will note that there is a clear and for the FCS form an important basis of the main precise interest in oversight in general and organizations foundations. Many scholars and financial control in particular. The observation authors, as well as academic and professional that most recent studies and research do not associations, have done so direct jurisdiction, by refer to Islamic historical roots of financial control developing several concepts and principles of in order to show their importance and their financial control which constitute a group actions right to development financial control to the 128 ֎ Al-Masraf (Jurnal Lembaga Keuangan dan Perbankan) - Volume 4, Nomor 2, Juli - Desember 2019 present. There for reflected by the concepts of the effectiveness of FCS. The research concluded financial control in Islam and the review of with a set of conclusions, perhaps the most important development its devices and methods and types of which are that many concepts, types, principles that existed for more than fourteen centuries, which which is newly recognized have been implemented was born of the teachings of Islamic law through by the state's financial control bodies and the most the Quranic verses and the Prophet's Hadith. In important feature of financial control in the addition the perceptions, sayings and actions of Islamic state was in consideration - the behavioral, the rulers of the Muslims of the caliphs and psychological and spiritual factors that exist in princes who were governed by Islamic teachings, the human, through the assumption of individual which shows that the Islamic state has progressed perception of the control of God (Almighty) as and flourished in those ages were when most of well as his own self-control, in addition to other its strategies worked efficiently and effectively factors often confirmed by recent studies in the and from those strategies it was a financial area of financial control. supervision. In this article I attempts to clarify DISCUSSION the role of Islam in defining the concept, types The concept of financial control and its types and principles of financial control which is based in Islam on the teachings of Islamic law, as well as the There have been many definitions about financial rooting of concepts and the types and principles control by writers and researchers depending currently in the field of financial control at present on the entries which each writer or researcher from the aspects that have been it is taken and tries to enter and relies on in defining the concept adapted in the Islamic state through its different of financial control in the form in which it aims to ages. In order to achieve the research objective, address the problem of research dealt with in his we have relied on the following hypothesis: The study or research. A modern and comprehensive majority of the concepts of financial control, concept of financial control is that it represents types and general principles are rooted in historical a comprehensive scientific approach that requires roots the Islamic state through its different ages, integration and the integration of legal, economic, and enforcement these fundamentals concepts accounting and administrative concepts in order at the present time can contribute in increasing to ensure the preservation of public funds and Financial Control Between Rashidun Caliphs (Bassem Ismail & Hamidah) ֎ 129 raise the efficiency of their use and effectiveness and the net profit has been received and saved in in the expected results. However that mission Baitul Malf or distribution on the beneficiaries should authorize for an independent body which (Attia, 1983). representing the executive management (Statement, It is noted through the introduction that the 1977). independent apparatus contained in the modern Anyway, refer to the legislation of the Islamic concept we have listed for financial control was religion - whether it was contained in the Qur’anic originally present through the AL Muḥtasib role verses or Hadiths of the Prophet Muhammad which is conclude in “Promotion of Virtue and or the conduct of the caliphs the Prevention of Vice” and he is appointed by (ﷺ) peace be upon him and the Muslim princes - we can note that the the Imam (Al Banna, 1984). According to the Allah previous definitions the financial control was Almighty said “Let there arise out of you a group of already in place and implemented more than people (Ummah), inviting to all that is good (Islamic), fourteen centuries ago, legally the Prophet was enjoining Al-Ma`ruf (all that Islam orders) and forbidding the first legislator of the teachings of Islam based on Al-Munkar (all that Islam has forbidden). That calls oracle and inspiration from Allah. Also in terms to righteousness, enjoins all that is good and forbids of economic, accounting and administrative the evil in the manner Allah commanded. And it is they is Al Muḥtasib which circulates the who are the successful (3:104). Where the enjoining (ﷺ) Prophet markets to see the conditions, as well as the term includes what God commanded him of caliphs and other Muslim caliphs after him if they behavioral trends, and some have considered it occupied the management of the affairs of the a word (Ummah or Nation) contained in the previous nation and equip the armies assigned to those verse applies to the organs of the state, they are who trust him from Muslims to control financial entrusted with the call to goodness and enjoining issues (Al-Hiti, 1992). In addition to that the Prophet what is good and forbidding evil (Al Banna, 1984). and after the Al Rashidun caliphs In addition Al-Muhtasib responsibility testify in (ﷺ) Muhammad and caliphs Muslims after them all fulfillment the accounting matters, and the duties of the the wages by themselves on the workers (collectors) accountant or auditor to inform the Wali (governor's) among themselves the money from Zakat revenue notification of any data presented in it is fraudulent (Income) and the expenses of their donations, and the creditors is subject to severe penalties such as beating, imprisonment, and expulsion 130 ֎ Al-Masraf (Jurnal Lembaga Keuangan dan Perbankan) - Volume 4, Nomor 2, Juli - Desember 2019 from the market (Attia, 1983). to clarify a lot of things including financial - in It is noted that the concept of financial control in order to avoid and prevent making mistakes, as Islam is a comprehensive concept of control in well as through warning of the severity of the its general sense, on this basis it can be said that punishment which will be exposed to the erroneous, the control systems in Islam have witnessed the and on this basis was Caliph Omar ibn al-Khattab practice of many types financial controls that are Radiallahu anhu he directs people and teaches very similar to those currently recognized and them, and then his family comes and says to can be divided into three main groups: control them: "You have heard what is the Prohibition and based on time, financial control in terms of the I do not know that. "One of the things that I prohibited body that it is handling and financial control in out of him only multiplied his torment twice (Habib, terms of nature. 1989). In addition to these notes the expenses First: Financial control in terms of timing operation in the Islamic state have not been done They are divided into: previous financial control until after the approval of the financial conduct and subsequent financial control/as follows: by the authorities this is illustrated by what Saad 1. Previous financial control which precedes the bin Abi Waqqas, after opening Iraq, asks for Caliph process of disbursement, the purpose of which Umar ibn al-Khattab Radiallahu anhu while people is to prevent the occurrence of errors Fraud, asked him to divide their booty between them and so some are called "preventive control", as and what Allah restored on them, he wanted to this type of control requires the administrative approve the financial conduct of the caliph before authority in advance obtains the permission it happened (Qutb, 1982). and authority to be disbursed by the higher 2. Subsequent financial control supervisory authority which is operating control Which is the control that follows the operations in accordance with the powers conferred upon of expenses and revenue (disbursement), in order it.