SHAH ALAM - The main reason GISB Holdings Sdn Bhd (GISBH) had not paid salaries to over 5,000 workers under its 25 subsidiaries was due to the conglomerate's lack of belief in the mainstream wage system.
A former number two leader of GISBH in one state claimed that GISBH, which was a remnant of the Al-Arqam and Rufaqa' groups, instead used the ma'aj system, which provided a cost of living allowance considered more flexible and fair.
The leader, who wanted to remain anonymous, stated that the concept of ma'aj was viewed as better than the conventional wage system because GISBH believed that individuals' living needs varied according to their rank and position, the number of wives and dependents, as well as their status.
He said that the distribution rate of the ma'aj value for each GISBH member was determined by their branch leader, while the cost of living allowance for each branch leader was decided by the senior leadership at the central GISBH.
"For example, a senior leader may have been provided with a luxury vehicle appropriate for their position on the grounds that they needed to engage with various stakeholders.
"However, lower-ranking workers who did not deal with outsiders may not have required a car or any vehicle at all.
"Similarly, the income value for a member with four wives and many children was different from that of someone with fewer wives or dependents,” said the former GISBH follower, who had been involved with the group's activities since the Al-Arqam era 25 years ago.
He added that the ma'aj system adopted by the group indirectly resembled a caste system, as it merely prioritised the leadership's interests while neglecting the welfare of lower-ranking members.
He added that this was because the distribution rate of the ma'aj payment was very subjective and complicated from the perspective of GISBH leadership, ultimately causing injustice to members who were not close to local leaders.
"If the ma'aj system had been implemented fairly and equitably, this initiative would have been far better than a capitalist wage system.
"However, the practice of the ma'aj system by GISBH had deviated and only benefited the leaders.
"For example, the distribution of ma'aj should have been centralised and recorded in GISBH's financial statements as part of wages and emoluments, but they failed to provide it,” he said.
The former GISBH leader also revealed that modern slavery issues occurred within the conglomerate due to the pressure on branch leaders to meet the monthly payment demands from central GISBH, which resembled franchise fees.
"For branch leaders who were good at managing businesses and generating profits, they may have been able to fulfil the welfare of lower members by providing a more reasonable ma'aj value.
"However, for GISBH business branches that struggled to survive and found it hard to generate profits, these branch leaders had to prioritise the monthly payments demanded by the central GISBH leadership.
"That’s why there were members in certain branches who lived in poverty and didn’t have enough money for food.
"This was because central GISBH did not care about the sustainability of their businesses at the branch level,” he said.
At the same time, he also confirmed claims that more inferior workers were not allowed to take leave, were denied access to the outside world, could not communicate with family members not involved in the organisation, and had to comply with the cost of living set by the company.
"GISBH indeed emphasised obedience to leaders above all else, including family relationships and spousal ties.
"Therefore, I agree that GISBH's business practices deviated significantly from the Islamic economic model.
"This was because GISBH practised an autocratic leadership structure, demanding unreasonable loyalty from its members while neglecting the importance of familial ties among members,” he said.
He also revealed that most of the business areas they ventured into were not profitable but had to be maintained to present a strong business image.
"It could not be denied that GISBH's food and beverage businesses, like Ikhwan Cafe, were indeed profitable, but some retail and hotel premises, such as Ikhwan Mart in Kota Damansara, were not. As a result, some workers there did not have enough money for their families' basic needs,” he said.