An Analysis of the Management of Zakat Allocation and Distribution in Brunei Darussalam

Abstract

The role of the state is not limited to only collecting Zakat but it must also distribute Zakat effectively. The correct practice of Zakat distribution is necessary to ensure the Zakat fund is utilised effectively and that it has the maximum impact on recipients especially in countries which do not enforce Zakat payment. In Brunei, the collection and distribution of Zakat is managed by the Division of Zakat Collection and Distribution Brunei (DZCDB). Based on the findings of this study some positive and negative issues are raised concerning the practice of Zakat distribution adopted by DZCDB. The findings show that DZCDB adopted a comprehensive priority assessment system which indicates a positive approach: in the earlier stage of assessment those who were more financially in need were more likely to be granted Zakat cash, while in distributing the amount of Zakat cash those who were more vulnerable and financially disadvantaged were more likely to receive a higher amount of Zakat cash assistance. Similar practice was also seen in distributing most of the non-cash assistance provided by DZCDB where the majority of recipients were those who were more financially disadvantaged. There were also a high number of cases where assistance was granted to non-applicants showing the inclusiveness of the assessment system. The amount of Zakat cash given to the recipients was found to have a very significant positive impact but the impact is not strong enough to create the right impact by enriching the recipients. The majority of the poor receiving Zakat remain below the Zakat poverty line despite receiving Zakat cash, and a similar situation was also observed among the needy recipients where there were substantial cases of income remaining below the Zakat poverty line. DZCDB has to be careful in granting assistance to non-applicants, especially on granting debt-relief, and has to make sure the granted assistance is necessary. The analysis of the characteristics of Zakat applicants indicates the severity of the poverty level and unemployment among the applicants which indicates the necessity for DZCDB to collaborate intensively with pertaining agencies not only to deal with the poverty and unemployment issues but also to help DZCDB to tailor its assistance.