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Question Summary:
A remuneration for tendering

Question Detail:

A tender was advertised by my firm. The nature of the work required from the terms of the tender is very technical and only one company could do it. However, the tender process required us to invite all companies to bid for the tender. I approached the company that I believed that could do the work based on his competencies, experience and proven track record in this field.
I told him how much he should tender for (heads up). However, the tender process was followed properly and had he not won after the process I would not have any control on this matter thereafter. During these discussions, I reached an agreement with this him that if he wins the tender he would give me a certain amount of money that is included in his price of the tender eg R105 the tender price (R100 his price and R5 for me).
 
I have done a benchmark exercise and consulted various people on the pricing of this tender. After the tender process, the company I approached (in private) won the tender as he met all criteria and pricing. Would such a transaction or upfront agreement constitute bribery in islam? If it is, as an alternative, can I then regard the R5 as a loan and repay him back after I consult with him with regards to the terms and conditions of the loan.

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
The question was sent to us during the period when the Dārul-Ifā was closed. We eventually decided to still respond to it after such a long while and as such, our apologies for the belated reply.
The issue of tendering is a very sensitive issue subject to a lot of abuse. People make 100,000’s of Rands by rigging the tendering process. Before we respond with a definite answer we require to ask further clarity as follows:

  • Did you have access to any private information on part of the tendering company that could have influenced the tender?
  • When you were consulting people about the optimum price of the tender, were they in possession of any private information on part of the tendering company?
  • Was the awardance of the tender solely to be attributed to the benchmarking service provided or did this private information influence you in any way?
  • Would your company have minded if they were to have known that you provided this service?
  •  
    And Allah Ta’āla Knows Best
    Khalil Johnson
    Student Darul Iftaa
    Canada 
    Checked and Approved by,
    Mufti Ebrahim Desai.

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