Andrew Cunningham of the Financial Times recently penned an column that would make any dhimmi proud.
He actually sees the solution to Shariah Finance’s woes to be an expanded role “in the boardroom” for Shariah scholars.
Worse yet, the context in which he made this proposal was in response to a Kuwaiti Shariah-Compliant company trying to weasel its way out of its financial obligations by claiming that it had mistakenly entered into an arrangement that was “unislamic.”
“It is an extraordinary sight. A Sharia-compliant finance company is arguing in an English court that it should not have to make good on one of its financial obligations because the obligation was never Islamic.
Yet that is exactly what Kuwait’s The Investment Dar (TID) company is arguing as it tries to avoid paying Lebanon’s Blom Bank a return on deposits placed with it.
TID’s argument is that, since its articles of association permit it to engage only in business that is Sharia-compliant, if the way in which it calculated the returns to Blom breached Sharia law, the contract with Blom is void. As the lawyers say, TID would have acted ultra vires — beyond its powers — in entering the transaction.”