GISBH's business practices resemble slavery

SHAH ALAM - Since the controversy surrounding GISB Holdings Sdn Bhd (GISBH) went viral, exposing their various business practices that allegedly exploit religion, children, women, people with disabilities (PwD) as well as people with autism, it sparked mixed reactions among Malaysians.

The majority of Malaysians appeared to support the authorities' actions in dismantling GISBH following the arrest of over 300 individuals, including its top management.

Despite the shocking revelations of various inhumane activities and practices by GISBH that went against Islamic teachings, there were still some who saw the large-scale operations against the group as an effort to weaken the Malay and Islamic economies.

This perception stemmed from the fact that GISBH was outwardly seen as representing Islam and was often promoted as practising an Islamic economic model based on halalan toyyiban (lawful and good).

In reality, GISBH was a remnant and offshoot of the Al-Arqam group, which was banned by the National Fatwa Council on Aug 5, 1994.

The fatwa declared that the teachings and beliefs of the Al-Arqam group were contrary to the Syariah law, which led to acts of syirik (polytheism).

Since its ban, the group faded from public attention, but many of its members were said to be operating independently under various names, such as Rufaqa’.

They eventually reunited, maintaining the same ideology as Al-Arqam, with GISBH emerging as one of the largest entities.

Surprisingly, this group has been operating since 2010 and has grown into a conglomerate, reportedly holding assets worth RM325 million globally.

With 415 business networks across 20 countries in Asia, Europe, Africa, and Australia, it generated an estimated RM187 million in annual revenue.

The group employed 5,346 workers across 25 subsidiaries, with assets that included hotels in Sarajevo and Turkey, 48.56 hectares of real estate in Perth and restaurants in Saudi Arabia, London, Paris, Istanbul, Dubai and Mecca.

GISBH has also been known to operate shrewdly, often staying under the radar of authorities, including state religious agencies.

According to recent reports, the group has frequently avoided paying taxes and business zakat.

Universiti Teknologi Malaysia Azman Hashim International Business School strategy and risk management chief Dr Razli Ramli said GISBH's modus operandi was often mistakenly viewed as an Islamic economic model due to confusion surrounding the understanding of Syariah-based business principles.

He said although GISBH's businesses were growing and showing profits, it did not mean that the structure and governance of the group’s business aligned with the Islamic principles established by the Prophet Muhammad PBUH.

"Profit alone is not an absolute indicator to define a business as Islamic. Aspects of justice, transparency and the welfare of workers and society must also be maintained.

"In Islam, business must be conducted with full integrity, avoiding monopolies and ensuring the welfare of workers and consumers is safeguarded.

"A model that neglects these aspects, even if it generates profit, cannot be considered representative of the Islamic economy.

"Trading that oppresses workers, is unjust in profit distribution or uses misleading marketing tactics is clearly against Islamic ethics," he said.

Razli said GISBH's business model failed to prioritise key elements recommended in Syariah, such as social responsibility, the establishment of justice in contractual agreements and the avoidance of practices like riba (usury) and gharar (uncertainty).

This, he said was a significant factor that distanced the conglomerate from the Islamic economic model.

He added that another important factor was the lack of a clear supervisory structure to ensure their operations adhered to legitimate Islamic business standards, which has led to public confusion about the true definition of Islamic business.

"To identify an entity that truly operates a Syariah-compliant business model, it is essential to refer to a recognised authority, such as the Shariah Advisory Council.

"Other key characteristics must include transparency in governance, fair profit distribution, no elements of oppression and compliance with valid and clear contracts.

"The entity must also adhere to the principles of Maqasid Syariah, which means ensuring human welfare and rejecting harm in all aspects of business," he said.

EVIDENCE THAT GISBH DOES NOT IMPLEMENT ISLAMIC ECONOMY PRINCIPLES

1. Failing to pay zakat and business taxes.

2. Not paying workers their salaries and instead replacing them with an unfair ma'aj system.

3. Denying workers' rights, including failure to make contributions to the Employees Provident Fund and the Social Security Organisation as well as lacking medical facilities for employees.

4. Exploiting orphans and children as workers and laborers.

5. Utilising orphanages to collect donations to support business operations.

6. Unfair profit distribution to employees.

7. Misleading marketing tactics and techniques that contradict Islamic law.

8. Disrespecting the principle of justice in contractual agreements.

9. Practicing a caste system that prioritises the interests of leadership.

10. Each GISBH branch must make franchise-like payments to the central GISBH regardless of financial capability and business performance.

11. An autocratic leadership structure demands unreasonable loyalty from members.

12. Mixing superstitious and polytheistic practices in business products.