Volume V: Economy, Politics, and Environmental Governance

Wakalah as a Framework for NGO Public Fund Governance: Towards Accountability and Sustainability in Malay-Islamic Eco-Theology

  • Muhammad Safwan Harun Universiti Malaya, Malaysia
  • Muhammad u2018Ammar Hamidi Universiti Malaya, Malaysia
  • Nur Fahimah Mohd Razif Universiti Malaya, Malaysia

Keywords

Wakalah Framework, NGO, public fund governance, accountability, sustainability, Malay-Islamic Eco-Theology.

Abstract

Wakalah is a fundamental instrument in Islamic commercial jurisprudence, founded upon the principles of representation, amanah (trust) and responsibility. In the context of public fund management by Non- Governmental Organizations (NGOs), the principles embedded in wakalah have the potential to function as a governance framework that enhances accountability while promoting more sustainable resource management. Nevertheless, issues such as unclear mandates, weak governance, fund mismanagement and organizational sustainability challenges continue to undermine public confidence in NGO institutions. Accordingly, this study aims to examine the potential of wakalah as a governance framework for NGO public fund management and to analyse its contribution to strengthening accountability and sustainability from the perspective of Malay-Islamic Eco-Theology. This study adopts a qualitative approach through library-based research by examining primary and secondary sources related to wakalah, NGO governance, accountability, sustainability and Malay-Islamic Eco- Theology. The documents are analysed to identify the relationship between the principles of wakalah as a key element of an effective governance framework. The findings indicate that the principles of wakalah, including amanah (trust), accountability, transparency, the preservation of maslahah and responsibility, possess significant potential to establish a more integrity-driven framework for public fund governance. The study further demonstrates that the principles of wakalah are consistent with the values of Malay-Islamic Eco-Theology in strengthening social responsibility, promoting prudent resource management and ensuring the accountability and sustainability of NGO institutions. Finally, the study proposes the development of a Wakalah Framework that can serve as a theoritical guideline for enhancing the credibility of NGO public fund governance in accordance with Shariah principles and sustainability objectives.

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