Kampac Oil M E signs MOA

with Amanah Islamic Bank

By Abdel Azish Dimapunung

Chairman and founder, Amanah Islamic Bank

The Amanah Islamic Investment Bank of the Philippines concluded its 16^th General Stockholders Meeting last Sunday, June 3, 2007 at the Islamic Bank Alkhairi Mosque in Manila. Among other things, the meeting confirmed, approved and ratified the Memorandum of Agreement between Kampac Oil Middle East and the Amanah Islamic Bank.

The Agreement was signed last May 15, 2007 after some due diligence work by Kampac Oil. The due diligence covers legal and political background check on the Amanah Islamic Bank. I have discussed part of this in my previous blog in this website entitled “Learning from Halliburton”

http://dimapunong.sulekha.com/blog/post/2007/05/learning-from-halliburton.htm

The Kampac Oil – Islamic Bank Agreement was immediately approved by the Board of Directors of the Bank on the day it was signed. Thereafter, it was submitted for confirmation and ratification by more than two thirds of all common voting stocks of the Islamic Bank. In accordance with the special charter of the Islamic Bank and it’s By Laws, this requirement has been accomplished during the bank’s 16th general shareholders meeting last June 3, 2007. The Kampac Oil-Islamic Bank agreement calls for a majority ownership of the bank by Kampac Oil M.E.

The Amanah Islamic Bank was founded by yours truly in 1992. Over the years it has grown into more than a billion dollar bank. The Islamic Bank is a proponent of renewable energy, principally biodiesel and bio-ethanol. http://dimapunong.sulekha.com/blog/post/2007/02/amanah-islamic-bank-pushes-for-renewable-energy.htm Both of these products require the basic fossil fuel.

The Kampac Group

Kampac Oil (KOIL) http://www.kampacgroup.com is an oil company based in the city of Dubai in the United Arab Emirates. The Kampac Group was established in 1988 by its founder, Mr. Charles Ampofo, now the chairman of the Kampac Group. According to him, from its modest beginning, the group has seen a steady growth over the last decade. Kampac now has 15 offices in 13 countries around the globe. These offices are located in the Ivory Coast, Nigeria, Jordan, Greece, the United Kingdom, Las Palmas, New York, New Orleans, Syria, and Canada. Kampac has now an office in the Philippines. Over the years Kampac has diversified into different categories of its business activities.

Charles Ampofo

Chairman, Kampac Group

Charles was here in the Philippines in the middle of May to see Her Excellency President Gloria Macapagal Arroyo. The meeting was arranged by a top level cabinet member in the Arroyo Administration. Charles is particularly proud of having a strong government and business relationships worldwide. “It is our strength”, he said. “Strong government relationships gives us the edge over our peers in the industry”, he added.

Her Excellency, President Gloria Macapagal Arroyo

Ampofo’s delegation to the Philippines includes Syed Hafizullah, the young and energetic Managing Director of Simex International FZ LLC, and a member of the Kampac group. It is engaged in metal, minerals and Trans Industrials.

Charles is coming back to the Philippines soon. According to him, he would probably be in the company of the minister of finance of Dubai and the chairman of the Islamic Bank of Dubai, the pioneering Islamic bank of the world. They would be coming not merely as tourists but as investors. That would be another boost to our currently booming stock market and the flourishing economy of the Philippines under the able leadership of President Gloria Macapagal Arroyo. The confidence of international business for President Arroyo is the topic of my previous blog http://dimapunong.sulekha.com/blog/post/2007/05/votes-of-confidence-for-president-arroyo-and-the-philippines.htm

The international presence of the Kampac group is shown by the fact that it employs over 800 personnel from 25 different countries with various ethnic backgrounds. It has also a team of 50 professionals consisting of high level administrators, bankers, geologists, geo-physicists, petroleum engineers and chemical engineers.

Investing in the oil industry

Kampac has recently acquired oil blocks in West and Central Africa. It has also Logistics in South America and Africa. It has committed to invest $115 million to exploration on the Louga and St. Louis blocks for the next 7 years. Kampac has also allocated $120 million for its downstream activities. Downstream operations consist of primarily trading, oil services and retailing. Currently Kampac has interest in more than six oil blocks in Africa. Although Africa is regarded as less endowed with resources, Charles says “we judge right and get it right”. This is what Kampac branded as ‘new frontier investment approach’, the lure of new frontier in oil exploration.

Kampac’s investments in storage facilities in South America and Africa peaked at $129 million. The investments consist of 600,000 metric cube land and 300,000 metric cube of Floating Storage Units (FSU). Kampac is now investing in the Philippine oil industry as well as in the Amanah Islamic Bank.

The Philippines needs a company like Kampac for its oil requirements. Recently, the country eyes Venezuela and Kuwait for oil imports. According to Energy Secretary Raphael Lotilla, the government is eyeing to get part of its oil requirements from other sources to help ensure a stable supply. The country wants to diversify sources of crude supply but it has to do this in cooperation with the refiners in the country. Government is not into refining so that imports of crude oil have to be in tandem with the schedule of refiners. The country has two refineries: one is being run by Petron Corp. in Bataan with a capacity of 180,000 barrels per day and the other one is in Batangas which is run by Pilipinas Shell Petroleum Corp. with a capacity of 110,000 bpd. This is an area where the assistance of Kampac may serve. Kampac’s investments in storage facilities in South America and Africa peaked at $129 million. The investments consist of 600,000 metric cube land and 300,000 metric cube of Floating Storage Units (FSU). Kampac is now investing in the Philippine oil industry as well as in the Amanah Islamic Bank.

Lotilla also said that the government will continue to pursue the idea of stockpiling oil, an issue that was taken up in the East Asia Summit. There is a plan to pursue the development of a 30 million barrel strategic stockpile program. Possible stockpiling sites include the Coastal Subic Bay Oil Terminal with about 500,000 to 600,000 barrels of idle storage capacity which can be converted as oil stockpile. The other site is the Nonoc Terminal in Surigao. Undoubtedly the Philippines needs storage facilities for its oil and Kampac Oil is the right company for the job. As most of the investments required through Kampac would be coming from Islamic funds in the Middle East, the Amanah Islamic Bank becomes a vital link.

Kampac’s corporate mission is stated simply but in global terms. Thus, Kampac aims to build a global company that cuts across all boundaries. Kampac’ vision is likewise simple: To discover, manage and sustain profitability through exceptional customer satisfaction and progress to the very best in the industries the group represents.

Learning from Halliburton

By Abdel Aziz Dimapunong

Founding chairman,

Amanah Islamic Bank

Chancellor, Islamic Banking Institute

In its website, Halliburton highlights its name with the word sustainability, indicating that it intends to strengthen, prolong and maintain itself as a corporate dinosaur. It could also mean that it proclaims itself not merely as a surviving entity but a kind that does not belong to any endangered specie. The highlight is Halliburton’s brand of facing adversity – even in the midst of an actual war. Halliburton is presently doing business in Iraq.

Halliburton does business where others dare not go. There is money where people are running away from. Halliburton is not merely a corporate entity. It is a suzerain in many ways, a roving planet on earth, and a corporate dinosaur. There are many lessons from this company.

Since 1919 when it was founded, Halliburton has continued to earn the respect of everyone in business and even in politics. It provides services through the delivery of innovative technology. It claims to have the expertise and outstanding service quality. No matter how challenging the technology may be, Halliburton finds a way to fulfill its promise to deliver.

Halliburton has rated its performance with a century of excellence. Its latest performance is now showing in Iraq, Nigeria and Kuwait. It renders energy related services, engineering and managing logistics for military operations. According to Whitley Strieber, there were allegations that Halliburton had improper dealings in these areas. Consequently, it is under investigation by the United States Justice Department and the Securities and Exchange Commission. I have no concern about the issues. I believe that allegations could just be politically motivated (Dick Cheney, Vice President of USA was formerly with Halliburton) and they are often related to competition. As a student of the case method, I only wish to learn from the way Halliburton deals with legal controversies.

How should a corporate entity deal with an investigation by a Justice Department? This is a question that is common to a famous Halliburton and a virtually unknown bank known as the Amanah Islamic Bank of the Philippines. There is no sensible comparison between Halliburton and the Amanah Islamic Bank - except maybe as between a mountain and a mole or as between a dinosaur and a cockroach. That is the condition today for the Islamic Bank. But that could change overnight if certain things could come to conclusions.

Actually, the Amanah Islamic Bank has been dubbed by the Philippine Daily Inquirer (PDI), a major daily in the Philippines, as a cockroach bank and its officers as cockroach bankers. I made no reaction to the popular column known as Cocktails. Later on, in a subsequent article by the columnist, he defines a cockroach bank as something that is hard to eradicate. I would interpret that to mean that the Islamic Bank also wears the shield of sustainability.

There is then a comparison on how this giant company and this cockroach bank dealt with investigations by a Justice Department.

Faced with an investigation, Halliburton announced last March 12, 2007, that it would open a corporate headquarters in the United Arab Emirates, in the city of Dubai. It would move its chairman and chief executive there. A company that was originally registered in Delaware, Halliburton will remain a US company subject to US laws. Dubai has no extradition agreement with the United States. This means that Halliburton’s executives could not be compelled to return to the US to testify and stand trial on issues related to any Halliburton activities under investigation. The company will also maintain its existing corporate office in Houston, Texas, as well as its legal incorporation in the United States. It will still be subject to domestic laws and regulations.

Those are the lessons that the Amanah Islamic Bank wishes to learn from Halliburton.

The city of Dubai

The Islamic Bank had already the experience on dealing with investigations. When faced by an investigation (on account of malicious allegations) by the Philippines’ Justice Department in year 2001, the Amanah Islamic Bank moved its international business office from Manila to Hong Kong. It also permanently moved its then president from Makati, Philippines to a permanent residence in Hong Kong.

This time the cockroach bank is moving from Hong Kong to Dubai, the city of falconry, to transform itself from a cockroach to perhaps a falcon.

Yesterday, I was invited to a dinner meeting by the Amanah Islamic Bank to cover a negotiation between itself and a group of investment bankers based in Dubai. I was invited to provide a background on how the Islamic Bank was organized and eventually privatized.

Dubai is a city of falconry

Dubai is a nice place. It is known to the world with its records from 1799. In 1833, the Bani Yas tribe of Abu Dhabi took over the town of Dubai. In 1835, Dubai and other States signed a maritime truce with Britain. Then Dubai came under the protection of the United Kingdom. The rulers of Dubai fostered trade and commerce and developed it into an important port of call. Until the 1930s, the town was known for its pearl exports. In 1971 Dubai and other emirates formed the United Arab Emirates.

Culture in Dubai is rooted in Islamic traditions. However, it allows foreigners to practice their own religion. The official language of the country is Arabic but business may be communicated in English. There are so many different nationalities in Dubai and English finds common ground. The population of the UAE as of 2001 was estimated to be 3,290,000, a mix of UAE nationals, other Arab nationals, Asians and Europeans. The population of Dubai was estimated to be 971,000.

By moving to Hong Kong and then Dubai, is the Islamic Bank running away from investigations? No. The investigations have all been resolved. They were all discovered to be malicious. The following is the results of the investigations of the Department of Justice on a complaint that it received docketed as I.S. No. 99-1806. As the I.S. number indicates, this pertains to a complaint in 1999, or seven years ago. The complaint was filed by certain former lawyers of the Bangko Sentral ng Pilipinas (BSP), Atty. Rolando A.Q Agustin and Atty. Rosalina P Ojascastro as allegedly representing the Monetary Board. The filing of the complaint was based on the original complaint by a certain Farouk Carpizo.

The BSP lawyers just did their job upon receipt of an original complaint that was maliciously filed with the Central Bank by Carpizo. Upon my research, I found that the lawyers of the Bangko Sentral filed the case wrongfully. They filed the case in the name of the Monetary Board but without the consent of the latter. They had no authority to represent the Bangko Sentral ng Pilipinas on legal matters. Under Section 18, par (c) of the new Central Bank Act, R, A. 7653, it is the Governor of the Bangko Sentral ng Pilipinas who is authorized to represent the Bangko Sentral in any legal proceedings, action or specialized legal studies.

On their affidavits, the BSP lawyers had to confess that they were not authorized by the Monetary Board. They were only acting on their own. That was a fatal mistake because they misrepresented the Monetary Board and the Bangko Sentral. Not having been authorized, the case cannot bind the Monetary Board and the Bangko Sentral.

The Islamic Banking Research Institute of which I am the chairman has complete files related to the investigations of the Department of Justice on this case. The Institute is being updated by the incumbent chairman of the Amanah Islamic Bank, Mr. Grande M. Dianaton, original stockholder of the old Philippine Amanah Bank and one of the founding stockholders of the Al Amanah Islamic Investment Bank of the Philippines.

First, who was Farouk Carpizo? Who was this man who posted malicious statements on the Internet? I shall not speak about him except that he died some years ago. I knew this because he was my neighbor. The fact the he died already is a good reason not to perpetuate his complaint. But somebody is still hosting his malicious postings on the Internet.

I shall limit myself to what official records have to show about Engr. Farouk Carpizo.

The following is the legal story based on the files of the Amanah Islamic Bank and the Department of Justice of the Philippines.

Seven years after we had formally organized the Islamic Bank in accordance with its charter, R.A. 6848, the Supervision and Examination Department of the Bangko Sentral ng Pilipinas (BSP) was misinformed by one Engr. Farouk Carpizo. Sometime in 1999, he represented himself to the BSP as a government representative. In truth, as the records show he was president of the old abolished Philippine Amanah Bank (PAB) – not the new Al Amanah Islamic Investment Bank of the Philippines. He claimed that the Islamic Bank is a government bank of which he is the president, representing the government. And he further charged Grande Dianaton, Ashroff Gaffoor and some of the directors of the private Islamic Bank as bogus!

Daud Mangompia, Islamic Bank chairman, 1999-2001

Based on hearsay, the BSP lawyers filed a formal complaint allegedly in the name of the Monetary Board against Daud Mangompia, Grande Dianaton, Ashroff Gaffoor and some directors and officers of the original Islamic Bank. Bad publicity in the press and the Internet was made, and investigation was conducted by the Department of Justice. What a waste of time! All the charges were maliciously manufactured. These false charges are the ones that were posted on the Internet.

The complainant charges those innocent officers as bogus – but actually it was he and his group who were the real bogus.

At this point, it bears relevance to introduce the complainant, Engr. Farouk Carpizo based on records of no less than the Hon. Supreme Court of the Philippines.

As I have said, I shall not personally comment on the person of Farouk Carpizo who is already dead but whose postings are still live on the Internet (a bogus website of the Islamic Bank at www.islamicbank.com. I will only quote the Honorable SUPREME COURT of the Philippines from a DECISION involving one Engr. Farouk Carpizo.

BEGIN QUOTE FROM SUPREME COURT

(In this case, the Supreme Court speaks through the Hon. Justice of the Supreme Court, Justice Hilarion Davide, Jr. who penned the following Supreme Court Decision about the same Engr. Farouk Carpizo as being “bogus”, who represented a “fake Board”)

“It must be pointed out that two groups had earlier vied for control of the IDP, namely, (1) the Carpizo group headed by Engr. Farouk Carpizo [Underscoring supplied]…Nevertheless, on 20 April 1989, the Carpizo group caused the signing of an alleged Board Resolution authorizing the sale of the two parcels of land mentioned above to private respondent Iglesia ni Cristo (hereafter INC).

Supreme Court: Farouk Carpizo Group is the bogus group

“If the SEC can declare who is the legitimate IDP Board, then by parity of reasoning, it can also declare who is not the legitimate IDP Board. This is precisely what the SEC did in SEC Case No. 4012 when it adjudged the election of the Carpizo Group to the IDP Board of Trustees to be null and void. By this ruling, the SEC in effect made the unequivocal finding that the IDP-Carpizo Group is a bogus Board of Trustees. [Underscoring supplied] Consequently, the Carpizo Group is bereft of any authority whatsoever to bind IDP in any kind of transaction including the sale or disposition of IDP property.

xxx xxx xxx

“. . . Nothing thus becomes more settled than that the IDP-Carpizo Group with whom private respondent INC contracted is a fake Board. [Underscoring supplied]

xxx xxx xxx

“… For the sale to be valid, the majority vote of the legitimate Board of Trustees, concurred in by the vote of at least 2/3 of the bona fide members of the corporation should have been obtained. These twin requirements were not met as the Carpizo Group which voted to sell the Tandang Sora property was a fake Board of Trustees [Underscoring supplied], and those whose names and signatures were affixed by the Carpizo group together with the sham Board Resolution authorizing the negotiation for the sale were, from all indications, not bona fide members of the IDP as they were made to appear to be. . . .

All told, the disputed Deed of Absolute Sale executed by the fake Carpizo Board [Underscoring supplied] and private respondent INC was intrinsically void ab initio.

[G.R. No. 127683 August 7, 1998, LETICIA P. LIGON, petitioner, vs. COURT OF APPEALS and IGLESIA NI CRISTO, respondents.]

UNQUOTE

Going back to the case, the following surfaced:

1. Owing to its fiscal crisis that closely approaches the Nicaraguan syndrome, the Philippine government has never subscribed to the capital stock of the new Amanah Islamic Bank.

2. The two BSP lawyers who filed the case had to confess upon investigation that they had no authority to file the case from the Monetary Board. That was an act of misrepresentation.

3. The two BSP lawyers did not know also that there was already an earlier Resolution by the Honorable Supreme Court of the Philippines on the same case complained about.

4. They charged Dianaton, Gaffoor and Mangompia for violation of Republic Act No. 337 - not knowing that this was a non-existing law at the time of the filing of the case. That was the old Central Bank Act which was enacted in 1948!

In summary the complaint was based on hearsay that was loaded with errors and falsity.

This story is not a fiction. The statements are facts of a malicious and baseless complaint (Department of Justice, I.S. No. 99-1806) filed by two misinformed BSP lawyers against innocent officers of the new Amanah Islamic Bank. They not only misrepresented the Monetary Board but they also misrepresented the Office of the President of the Philippines. And worst, they are misleading the general public.

The following are the facts that were considered by the Department of Justice (DOJ) in its Resolution on the complaint of the Central Bank

BEGIN QUOTING THE DOJ RESOLUTION.

The respondents , “as summarized, jointly alleges that the complaint-affidavit of the BSP against the respondents for violation of Section 6 of RA 337 in relation to Section 36 of RA 7653, has no basis in fact and in law, based on the following: a) that we are all stockholders and organic directors and officers of the Islamic Bank, a corporation created by RA 6848, and duly organized by most of us with present business development address at No. 3, Block 11, Marawi Avenue, Maharlika Village, Taguig, Metro Manila; b) that respondents Mangompia, Badio, Pangcoga, and Rasuman, were among those present as organizers in the organizational shareholders meeting of the Islamic Bank on April 28, 1992 at the Army and Navy Club, Manila, of which the original and authentic Islamic Bank was officially organized in the manner prescribed by law under R.A. 6848; c) that their decision to subscribe to Series “B” shares and Series “C” shares in the capital of the Islamic Bank was based on their knowledge of this legal processes which was sanctioned by the confirmation letter of the SEC which issued a confirmation letter, dated July 29, 1993, that the Islamic Bank is deemed registered and authorized to operate as of the date of approval of RA 6848, and this was further boosted by another confirmation letter, dated September 8, 1993, that the Islamic Bank is exempted from the Revised Securities Act; d) that the legality of their being stockholders of the Islamic Bank is even supported by the Hon. Court of Appeals in its Decision on Civil Case No. CA GR No. 28445 entitled Abdel Aziz Dimapunong v. Hon. Zosimo Z. Angeles where on page 6, par. 2 the Hon. Court states that “ there is no question that the other petitioners, Abbas, Dianaton, and Malambut, are stockholders of the bank”. Abbas and Malambut were among their predecessor directors while Dianaton is still a director; e) that the legality of their being stockholders of the Islamic Bank is also supported by the Office of the Solicitor General in its Motion and Manifestation dated September 22, 1992; f) that a careful reading of the complaint of the Monetary Board clearly shows that it is a recycled complaint, the original “Complaint For Injunction with Damages” having been filed by then Finance Secretary Roberto De Ocampo and Farouk Carpizo. This is the same complaint by the BSP officials in the instant case; g) that the complaint alleges without basis that “the legitimate government owned Islamic Bank, which is duly recognized by the Bangko Sentral, is the Al Amanah Islamic Investment Bank of the Philippines (AIIBP) which was created and existing pursuant to the provisions of R.A. 6848, and the majority shares of which are held by the National Government, Social Security System (SSS), Government Service Insurance System (GSIS), Development Bank of the Philippines (DBP), and the Asset Privatization Trust (APT)” In response, we state that this is totally wrong because the shareholdings of the National Government, SSS, GSIS, DBP, and APT refers to their shareholdings in the abolished Philippine Amanah Bank (PAB). These government shareholdings have long been totally worthless because of the total bankruptcy and insolvency of the Philippine Amanah Bank which is now being resurrected by the BSP by usurping the name of our Islamic Bank; h) that the complaint states that certain persons were “nominated by the president of the Philippines and elected in the alleged general shareholders meeting held on June 30, 1999. This is not true, the President of the Philippines did not nominate anyone but in his letter of June 22, 1999, he wrote to DBP Chairman Ramoncito Z. Abad (not to the chairman of the Islamic Bank) expressing ONLY A DESIRE – not a nomination; i) that the complainant should be educated about the charter of the Islamic Bank to discover that we do not have to be under the supervision of the BSP because the Islamic Bank is not just a bank as defined under the General Banking Act but also an INVESTMENT HOUSE”. Should it operate as an investment house, the Islamic Bank is under the supervision of the SEC; j) it must also be noted that the charter provides them exemption from the provisions of the General Banking Act and Central Bank Act. The charter provides the following exemption: “SEC. 39. Non-Applicability of Selected Acts. – In order to achieve the international and domestic objectives of Islamic banking business, the provisions of the following acts and laws shall not apply to the Islamic Bank to the extent as herein rendered inoperative: “(1) The provisions of the Central Bank Act and the General Banking Act with particular reference to the determination of bank interest rates, loans and discounts, and any interest-bearing instruments or charge: provided that nothing contained herein shall be construed to impair the powers of the Central Bank to supervise and regulate the activities of the Islamic Bank.”; k) that the undersigned respondents also question the capacities of Rolando A.Q Agustin and Rosalina P Ojascastro as representing the Monetary Board in the instant legal action. Under Section 18, par (c) of the new Central Bank Act, R, A. 7653, it is the Governor of the BSP who is authorized to represent the BSP in any legal proceedings, action or specialized legal studies; r) Finally, it must be noted that in supervising the Islamic Bank, the Monetary Board shall supervise it in accordance with the Sharia’ Law (Sec. 43, R.A. 6848)

[Pages 7, 8, 9, and 10, DOJ Resolution, on I.S. No. 99-1806, dated February 6, 2001, Manila, Philippines]

UNQUOTE THE DOJ RESOLUTION

What happens next?

The malicious complaint did not progress but it had wasted investigators time. The lawyers were not authorized by the Monetary Board of the Bangko Sentral. They confessed to have acted on their own – not the Central Bank.

Get well wish card

for Mike Arroyo

 

 

By Abdel Aziz Dimapunong

Imam, Masjid Alkhari, Manila

Here is a wish card for the First Gentleman of the Republic of the Philippines, Jose Miguel Tuason Arroyo, to get well soon. The President’s husband underwent the high-risk open heart surgery last Easter Sunday, April 9, 2007 at the St. Luke’s Medical Center in Quezon City. The First Gentleman bravely underwent the heart operation after he was diagnosed with a heart ailment known as dissecting aortic aneurysm.

 

The First Gentleman with the President while taking her oath of office as

President of the Philippines

The day he bravely faced the surgeon’s knife was Easter Sunday, a Special Holiday in Christendom. It is also a holiday to me. On the eve of Easter Sunday in 1975, I was rushed to the Makati Medical Center for treatment after having met a serious car accident where my car was totally wrecked. One half of my car (the rear half) was left at Paseo De Roxas and the other half swerved to De La Rosa Street, Makati City.

The thing that I remember most during my confinement inside the Makati Medical Center was a visit of a well wisher classmate. He was Diosdado Macapagal, Jr. (Buboy), brother in law of the First Gentleman, Mike Arroyo.

Twenty years later, I was again in an Emergency Room. This time I was hastened to the ER of the Philippine Heart Center. I had a heart attack. I had to face immediate open heart surgery, the same emergency situation as that of the First Gentleman. On an emergency like this persons that could help come to mind. Buboy was one of them. As soon as he came to know my situation, he sent a check to help out. He also called me by phone and wished me good just before my open heart surgery. I will not forget that concern. My gratitude to Buboy extends to his sister, Her Excellency, President Gloria Macapagal Arroyo and to his brother-in-law, the First Gentleman, Jose Miguel Arroyo, and all members of the First Family.

To the President, Your Excellency, Mike Arroyo is already out of danger, Insha Allah. Open heart surgery has already been perfected in our country. We have the best of heart surgeons and cardiologists in the world.

In only few days, the First Gentleman could be playing again with his grand daughter.

All my best wishes for the First Family. Rahimakom Allah. May The Almighty God bless you.

Sincerely,

Abdel Aziz Dimapunong

Imam, Masjid Al Khairi, Manila

The biofuel visionaries

By Abdel Aziz Dimapunong

Chancellor, Islamic Banking

Research Institute

Mr. Rudolph Diesel and his Prototype diesel engine

There cannot be a complete discussion on biofuels and biodiesel without mention of Mr. Rudolph Diesel, the inventor of diesel engine and a biofuel visionary. And when we speak of blending one form of engine fuel like gasoline with another kind like ethanol, or fossil diesel with biodiesel, we have to learn from another inventor and pioneer of blending fuels, Mr. Fairbanks and his associate Mr. Morse. Speaking of engine and diesel, we can not overlook Ford, Cummins and Benz. Looking back at these pioneering scientists and their remarkable inventions in our search for alternative renewable energy, we realize that we are actually going back to the 19^th century. We are not moving forward. History is just repeating itself after more than a century.

Mr. Rudolph Diesel (1858-1913)

The development of the diesel engine by Mr. Rudolph Diesel runs concurrent with the use of biofuels. The diesel engine actually began using biofuels until it was replaced by fossil fuels. Now, therefore, we should not find it hard to get back to biofuels as used by the inventor himself. As we look back to history, we find that it was global politics that relegated biofuels to the background. The story of Diesel and his diesel engine is the technical aspect of the history of biofuels.

Mr. Rudolph Diesel (1858-1813) was born to the era of the steam engine. As a scientist, Rudolph Diesel developed a theory that revolutionized the engines of his day. Diesel envisioned an engine in which air is compressed to such a degree that there is an extreme rise in temperature. When fuel is injected into the piston chamber with this air, the fuel is ignited by the high temperature of the air, exploding it, forcing the piston down. Diesel designed his engine in response to the heavy resource consumption and inefficiency of the steam engine of his time, which was rated at only 12% efficiency.

On February 27, 1892, Diesel filed for a patent at the Imperial Patent Office in Germany. His application was granted for a Working Method and Design for Combustion Engine. With contracts from machine manufacturers, Diesel began building working models of his engine. In 1893, the first model ran under its own power and it was rated with 26% efficiency. This was remarkable because the rating was more than double the efficiency of the steam engines that were in use. Finally, in February of 1897, he ran the first diesel engine suitable for practical use, which operated at 75% efficiency.

In 1898, Rudolph Diesel demonstrated his engine at the Exhibition Fair in Paris. This engine stood as an example of Diesel's vision because it was fueled by peanut oil - the original pure vegetable oil (PVO) which we now call biodiesel. He thought that the utilization of PVO was the real future of his engine. That is why when we start to use PVO again, we are actually following the visions of Mr. Diesel. He hoped that it would provide a way for the smaller industries and the farmers a means of competing with the monopolizing industries. Just like what we strive for today, Mr. Diesel look at his diesel invention as an alternative for the then existing fuel consumption. Our version of today’s alternative is to replace an existing fossil fuel with a renewable pure vegetable oil (PVO).

As a result of Diesel's vision, compression ignited engines were powered by vegetable oil until the 1920's. Today, as we try to get back to biodiesel, we are actually driving ourselves back to that era of discovery. We now wish to power our engines with biodiesel again. I should think we should call it rediscovery.

The early diesel engines were so heavy for many technical reasons. First, the cylinder of a diesel engine was naturally longer because piston displacement requires it in order to have more compression. Second, the diesel engine was heavy because of the size of the fuel injection pump. They were not really suitable for motor vehicles. Their market was for stationary use such as power for industrial and shipping in the early 1900's. Ships and submarines benefited greatly from the efficiency of this new engine, which was slowly beginning to gain popularity.

Rudolph Diesel disappeared in 1913. There were controversies and some questions about his death. Some think it might have been accidental or even a suicide. That’s what I believed in. However, others considered a possible political motivation. Whether by accident, suicide or murder, the world had lost a brilliant scientist and biofuel visionary.

Thaddeus Fairbanks

The idea of blending gasoline with a certain percentage of another kind of fuel such as ethanol had actually been considered by the Thaddeus Fairbanks. Yet it now appears to be an innovation, some kind of a new technology.

Fairbanks, Morse & Company had its beginning in 1823 when inventor Thaddeus Fairbanks began his business in ironworks. Fairbanks was the leading manufacturer in the United States during his time. He was the best known in the whole world until he was overshadowed by the rise to popularity of Henry Ford.

 

Fairbanks and Morse began producing oil engines in the 1890s. We can say that Fairbanks was a contemporary of Mr. Diesel. While Diesel was working on diesel engines, Fairbanks was also working on kerosene engines. The Fairbanks and Morse gas engine was widely accepted by farmers. It was used mainly for irrigation and electricity generation. It was also used for oilfield work.

 

In summary, Fairbanks and Morse power plants evolved by burning kerosene in 1893, then to semi-diesel engines in 1913 and to full diesel engines in 1924.

Fairbanks and Morse Model Z engine

(Blending gasoline with kerosene)

In 1916 the company began production of the Model Z single cylinder engine in one, three and six horsepower sizes.

 

From 1916 to 1946, Fairbanks and Morse produced over half a million units of Model Z. That was a period of 30 years. In our estimate, about fifty thousand of these units found their way to the Philippine Islands. Most of the units were probably brought into the country by the United States army during World War II. More than a dozen of these units found their way in 1960 to our shed in Lanao Del Norte, Mindanao. My father collected them as a matter of hobby. We excavated most of them from where they were abandoned. Some of them were bought by my father “por kilo” a way of buying steel based on its weight. As I will explain later, this is the first engine that uses a blend of fuels.

 

After the expiration of Rudolph Diesel’s of license in America in 1912, Fairbanks entered the large engine business. As noted earlier, Mr. Diesel died in 1913. Fairbanks and Morse took over the development of the diesel engine. The company's larger Model Y semi-diesel became a standard engine of its time. The model Y was available in sizes from one through six cylinders.

 

The Y-VA Fairbanks engine was the first high compression using full diesel. This machine was developed in Beloit and introduced in 1924.

 

Fairbanks and Morse continued to build diesel and gas engines. Export offices were established in Rio de Janero and Buenos Aires. The model Z engines were built into the 1970s in Mexico. An Australian branch factory, similar to the Canadian Branch operation, was also opened. Many Fairbanks engines dutifully served into the late twentieth century,

 

Henry Ford into diesel

 

As noted earlier, Fairbanks was the best known in the whole world until the rise of Henry Ford in the car industry. But this popularity had to do with the idea of the assembly line of production. And it had to do with the popularly known Ford Model T. Early American Ford automobiles were not diesel driven, but they were powered by ethanol. Yes, this is the ethanol that we are now considering for rediscovery. This is the ethanol that is provided for in the Philippines Biofuel of 2000.

Henry Ford shared a similar vision with Rudolph Diesel. He believed that pure vegetable oil should the fuel of the transportation industry. In a partnership with Standard Oil, he helped developed the biofuel industry. But ethanol disappeared from the scene as a result of the development of the petroleum industry.

Cummins, a diesel engine mechanic inventor

It was Clessie L Cummins, a mechanic-inventor who actually worked on the design problems of the diesel engine. The problems of diesel engine at that time had to do with the size and weight. There was also the issue on the instability created by its fuel system. In 1919, Cummins developed a single disk system that measured the fuel injected. Like the other early engines, Cummins' products were stationary engines and his main market was the marine industry.

It was also during the 1920's that diesel engine manufacturers created a major challenge for the biofuel industry. Diesel engines were altered to utilize the lower viscosity of the fossil fuel residue rather than a biomass based fuel. The petroleum industries were growing and establishing themselves during this period. Their business tactics and the wealth that many of these oil tycoons already possessed greatly influenced the development of all engines and machinery.

It was in the 1920s that the alteration to the original engines was first introduced as a step in the elimination of the production structure for purely vegetable oils. It was also a step in forcing the concept of biomass as a potential fuel base into obscurity, erasing the possibilities from the public awareness.

In 1929, the Stock Market crashed. This brought the threat of bankruptcy to Cummins. In an innovative move, however, he installed a diesel engine in a limousine and took his backer, Irwin, for a ride, assuring further investment. Cummins continued to experiment with the diesel motor vehicles.

In 1931, Cummins set a speed record and distance record by driving a truck with a Cummins diesel engine coast to coast in the United States. With this distance, Cummins established an endurance record of 13,535 miles at Indianapolis Speedway. Cummins' diesel engines were then established and trucks as well as other fleets began using them. Over the years, Cummins has continued to improve the efficiency of the diesel engine, providing technological innovations. Their engines have set a high standard for the industry.

The Mercedes Benz diesel engines.

The 1920's brought a new injection pump design, allowing the metering of fuel as it entered the engine without the need of pressurized air and its accompanying tank. The engine was now small enough to be mobile and utilized in vehicles. In 1936, Mercedes Benz built the first automobile with a diesel engine. These were dependable, enduring automobiles that lasted well into the second half of the 20^th century.

The oil crisis

The 1970's arrived and the riding public, who were firmly dependent on foreign oil, yet, unaware of the depth of their dependence, were suddenly faced with a crisis.

In 1973, OPEC, the Middle Eastern organization controlling the majority of the world's oil, reduced the supply of oil and raised the price, sending the United States and other countries into a crisis. Long lines at pump stations started to appear. I was among them. I remember the gas ration system. This crisis was recreated in 1978. Long lines became more longer at the gas pumps. People panicked as they realized that they depended on the consistent supply of oil - foreign oil. Conservation and alternatives became important.

Because of the oil crisis, the riding public looked to diesel fuel which was more efficient and economical and they began buying diesel-powered automobiles. These automobiles include the Mercedes Benz, Isuzu Volkswagen, plus a good portion of Audi, Volvo and Datsun during the 1970's. For the first time, American manufacturers began producing automobiles with diesel engines. General Motors made and sold diesel automobiles in the late 1970's, accounting for 60% of all diesel sales in the United States. This surge of diesel only started to decline in the 1980's when the price of oil had been re-stabilized. Along with this, the automobiles produced by General Motors were basically converted gasoline engines.

No war for oil

As we entered the 21st Century, we had become conscious of and focus on our environment, clean air, the greenhouse effect, and pollution. It has become fashionable to speak of alternative energy, renewable energy, bioethanol, biodiesel, and many kinds of biofuels. Laws were passed in many countries. Nations discussed oil supply and the reduction of dependence on fossil fuel.

 

 

Then came the Iraq war. On March 20, 2003, the United States invaded Iraq. There was debate on the reason why war erupted. Was it because of the so-called Weapons of Mass Destruction? Was it because of oil? At any rate, there has been a popular slogan: No war for oil.

Looking forward to our future, our dependency on foreign oil and its rising prices as well as probable instability due to conflicts that could lead to war will drive us to explore alternatives with a more open mind.

 

Rudolph Diesel designed his first engine at a point in time when there was no Organization of Petroleum Exporting Countries (OPEC). There was no oil phenomenon. Mr. Diesel simply invented the diesel engine that will use the available local fuel sources such as pure vegetable oil that is what we call now as biodiesel. It has been in used since 1890! These fuels were from sustainable renewable sources, easily accessible by the average person. Diesel’s intention was to empower the small industries, farmers, craftsmen, and artisans who were struggling to survive the steam-engines industrial monopolies. This humanitarian vision is now being revived by us with the resurgence of the biofuel industry here and abroad. Along with this revival of a vision comes the possibility of re-empowering ourselves and our communities.

The biodiesel alternative

What is biodiesel? Biodiesel is made from animal fats and vegetable oils. Scientifically, biodiesel is fatty acid alkyl esters. Biodiesel burns cleaner than petroleum diesel. It can be used in compression-ignition engines just like diesel. Biodiesel is being viewed as an alternative to fossil fuel. The greatest benefit is seen when used in its purest form, 100% biodiesel, or B100.

Biodiesel can be mixed with regular petroleum diesel. This is usually referred to as blends.

There is now a great deal of excitement and optimism surrounding biodiesel as real replacement to petroleum diesel. Since biodiesel is cleaner burning, emissions are greatly reduced. To put this in perspective, biodiesel reduces the carbon monoxide emissions by half. Also, biodiesel is non-toxic and is also biodegradable. Many stations are offering biodiesel now. Biodiesel shows a great deal of promise to help in solving some of our most pressing needs.

When I was young, my father taught me how to operate our rice mills that were powered by Fairbanks and Morse engines. Then he taught me how to run our saw mill that was powered by a huge diesel engine known as Deutz.

As noted earlier, Fairbanks and Morse Company has produced a wide variety of products, including the Fairbanks model Z engine. I had the occasion to be trained in the operation of Model Z engines which runs on gasoline, a blend of gasoline with kerosene, and finally full kerosene.

 

I had experimented on the use of alcohol as a prime fuel for Model Z engine before it runs on full kerosene. This is actually the idea of fuel blending.

The Biodix initiative

 

Biodix was formed early this year out of a desire to provide ecologically sustainable local alternatives to fossil fuels. Biodix refers to the group of ERA Petroleum Co. Ltd. and the Amanah Islamic Bank. They regard biofuels as renewable fuels and this is central to their business philosophy.

 

Ashroff Gaffoor

President ERA Petroleum Company

Biodix is dedicated to expanding the biofuels industry, in particular, the use of biodiesel in the Philippines. The group also strives to increase awareness of alternative fuels and their production. Finally, and most important, Biodix is committed to the empowerment of individuals, farms, and businesses within the Autonomous Region in Muslim Mindanao by providing the information, equipment, products, and services necessary to make the shift in fuel responsibility.

 

Biodix is a brand of biodiesel that is being developed by ERA Petroleum Company Limited of Hong Kong and the Amanah Islamic Bank.

Senator Tamano and Islamic banking

 

By Abdel Aziz Dimapunong

Chancellor, Islamic Banking Research Institute

Last October 2006, I wrote a blog about the founders of Islamic banking based on documented records compiled by the Islamic Banking Research Institute. The research covers historical background of pioneering Islamic banks as well as their founders.   These are existing and operational Islamic banks and Islamic financial institutions that were founded in the early 1970s.  In the world of Islamic banking, their founders are well known. They were listed by the Institute as composing of only two types: individuals and governments. The individuals are composed mainly of three personalities, the “Bankers Par Excellence”, namely: His Highness, Prince Muhammad Faisal Al Saud of the Faisal chain of Islamic banks, His Excellency, Saleh Abdullah Kamel of the Al Baraka group of banks, and His Excellency, Ahmad Muhammad Ali, president of the Islamic Development Bank. The multi-lateral organization that is otherwise known as the Organization of Islamic Conference was the founder of the Islamic Development Bank whose president from the start has been Dr. Ahmad Mohammad Ali.

It has been suggested by one Grande Dianaton, incumbent chairman and chief executive officer of the Amanah Islamic Bank, that the late Senator Mamintal A. Tamano be considered as among the founders of Islamic banking. This is also the view of Datu Muamar Badio, former chairman of the said bank.  Of late, I also received some email messages that echoes the same opinion as that of Dianaton and Badio. The Institute then reviewed its research on the founders of Islamic banking. After some reflections, we consider the late Senator Mamintal A Tamano as among the founders of Islamic banking.

The late Senator started to conceptualize a Muslim bank in the Philippines as early as 1971. That was the time Islamic banking was in its infancy stage. Although some scholars claimed that Islamic banking started in the late 1950s, others insisted that it actually goes back to the sixties. But it is quite popular to claim that it was only in 1972 that stable Islamic banks were established in Egypt. They were the Nasser Social Bank of Egypt and the Faisal Islamic Bank of Egypt.

The concept of  a Muslim bank by Senator Mamintal Tamano  was later to become the Philippine Amanah Bank that was created by Presidential Decree No. 124. This bank existed from 1973 to 1989. It was the precursor of what is now the Al Amanah Islamic Investment Bank of the Philippines created under Republic Act No. 6848. Senator Tamano played a key role in the establishments of these two banks in the Philippines.

The birth of a Muslim leader

Mamintal Tamano was born in Tamparan, Lanao Del Sur on December 25, 1928. He finished his secondary course at Lanao High School as valedictorian. He graduated Bachelor of Arts in 1952 and Bachelor of Laws in 1953 both at the University of the Philippines, the premier institution of higher learning in the country.  

On 31 May 1958 Senator Mamintal Tamano was married to Putri Zorayda Abbas with whom he had nine children.  Mamintal Tamano, as a lawyer became Justice of the Peace in the province of Lanao.

Tamano’s marriage life did not stop him to pursue higher education in law. In 1958, he was graduated Master of Laws at the Cornell University, U.S.A. When he returns home, he entered the political arena. He was elected vice-governor for ten years from 1959 to 1968 in the province of Lanao del Sur.

After being a vice governor, Mamintal Tamano was appointed as Commissioner of the Commission on National Integration, a cabinet rank in the Marcos administration.  The Commission provides study scholarship to deserving members of the cultural minority groups. They usually belong to the poor but belonging to the upper 15% of the graduating class in high school. Tamano was Commissioner until 1969 when he filed his candidacy for senator. It was this time that I met the then Commissioner Tamano, only months before he became a senator. I served as volunteer to his campaign headquarters at Syquia Apartments until the election was over. Fortunately, he was elected senator. I was among the employees of his office until the Senate was abolished and Martial Law was declared by President Ferdinand Marcos.

In the Philippines where the Muslims were in the minority, it was a rarity for a Muslim to be elected senator. The Philippine Congress has a limited record on Muslim representation in its chamber. Under the American regime, the Senate first elected in 1941 a Muslim sultan by the name of Alauya Alonto. When sovereignty was handed back to the Philippines in 1946, two senators were elected in the First Congress, namely: Alonto and Salipada Pendatun. The Second Congress had no Muslim senator. In 1955 Domocao Alonto, son of Sultan Alauya Alonto, was elected to the Senate to serve in the Third and Fourth Congress. Again, there was no Muslim senator in the Fifth and Sixth. It was on the Seventh Congress that Mamintal Tamano was elected during the 1969 election. In the Eighth Congress two Muslims were elected after the end of Martial Law. They were Mamintal Tamano and Santanina Rasul.

Conceptualizing the Philippine Amanah Bank

As a legislator during his first term, Senator Mamintal Tamano intended to sponsor a bill for the passage of a charter of what he initially called as the Philippine Muslim Bank (PMB). I was then a working student, and I was a registered employee of the Senate under the Office of Senator Tamano, then chairman of the Senate Committee on Banks and Currencies. And I was privileged to have typewritten Tamano’s drafted bill for the charter of PMB. This draft did not materialize into a law because just as soon as the proposed charter was drafted, martial law in the Philippines was declared by Pres. Ferdinand Marcos. The entire Congress (includes the Senate) of the Philippines was abolished.

In later part of 1972, Senator (this time already ex-Senator) Tamano made some revisions to the proposed charter. The name was changed from Philippine Muslim Bank to Philippine Amanah Bank. The draft format was changed into a presidential decree format without a trace to Tamano. The Senator asked me to deliver the draft to a member of the Marcos cabinet who was among his close friends. I delivered the final draft to Tamano’s friend in the Palace. The following year it became the Presidential Decree No. 264, otherwise known as the Charter of the Philippine Amanah Bank.

The early seventies was the age of the oil phenomenon. Enthusiasm on Islamic banking shifted from Egypt to Saudi Arabia. The pioneering Islamic banker was HRH Prince Mohammed al Faisal Al Saud. To his credit, the Islamic Development Bank of Jeddah, Saudi Arabia was established. He was also the founder of the Faisal chain of Islamic banks and financial institutions. Among these were: the Faisal Islamic Bank of Egypt, Faisal Islamic Bank of Sudan, Faisal Islamic Bank of Kibris, Masraf Faisal Al Islami Bahrain, Masraf Faisal Al Islami Niger, Masraf Faisal de Guinea, Masraf Faisal de Senegal, Islamic Finance House, Faisal Finance Institution (Istanbul), and the Dar Al Maal Al Islami in the Bahamas. Another Islamic banker from Saudi Arabia was Sheikh Saleh Abdullah Kamel, a prominent businessman, and founder of the Al Baraka Group of companies. He was very closely related to Prince Faisal Al Saud. Sheikh Kamel was also a founder of a chain of Islamic financial institution. Among them were: the Al Baraka Al Sudani, Al Baraka Bank Bahrain, Al Baraka Turkish Finance House in Istanbul, Al Baraka Islamic Bank Mauritania, Al Baraka Investment Company in London, Al Baraka Finance House in London, Al Baraka International in London, and Al Baraka Banking Corporation in Houston, Texas.

 

Our Philippine Amanah Bank was followed in 1975 by the first Islamic bank in the Middle East which was chartered in the United Arab Emirates. That was the Dubai Islamic Bank.

In the 1970s, there was no clear legal definition of what Islamic banking means. At least, this was the case in the Philippines. Sharia’ counsels were not popular then. In the Philippines, Islamic banking was not even mentioned in the General Banking Law or the Central Bank Act. There was no reference to Islamic banking. There were no rules and no regulation specific for Islamic banking. People simply thought that by being called Amanah bank, Al Amanah Bank, or any Arabic named bank with Moslem officers and holding branches in predominantly Muslim areas, such a bank could already be branded as an Islamic Bank.

In the 1980s, the Ulama counsels (i.e., the Islamic scholars) were already complaining about misleading the general public, making them believe that the Amanah Bank was Islamic Bank. They insisted that charging interest is violative of Islamic tenets. So, in 1986 the Majlis Da’wah Philippine Al Islami was formally organized by then Mohammad Mauyag Tamano, then Philippine Ambassador to Saudi Arabia. One of the objectives of this organization was to clamor for the establishment of a truly Islamic Bank in the Philippines. That means banking sans interest rates. This organized move was partly inspired by Malaysia’s successful passage in 1983 of its Islamic Bank Act 1983, and by the eventual establishment of the Bank Islamic Malaysia Bhd on July of that year. This bank was designed to cater for the banking of Malaysia’s predominantly Muslim population who perceive the western banking to be inappropriate for their needs as Muslims.

The return of Tamano to the Senate and the creation of Amanah Islamic Bank

Upon the end of Martial Law in March 1980, the Kilusang Bagong Lipunan (KBL) had become the ruling party in the Philippines. During that time, other parties were being formed. Senator Gil Puyat resumed the Presidency of the Nacionalista Party upon the strong representation of high officials of the Party including  Vice-President Fernando Lopez, and Speaker Jose B. Laurel Jr.,  President Gil Puyat issued Executive Order No.1, Series of 1980 which authorized him to create an Ad Hoc Committee. The revitalization and strengthening of the Nacionalista Party was the purpose of the Ad Hoc Committee. But this suffered a setback when Gil Puyat passed away on March 22, 1981 of a heart attack. The task of revitalizing the party was then pursued by the Ad Hoc Committee of which Mamintal Tamano was a member.

With his return to politics, Tamano became a member of President Corazon C. Aquino’s cabinet as Deputy Minister of Foreign Relations in 1986.

On May 11, 1987, elections were held for 200 members of the House of Representatives and 24 Senators. Elected as senators were  22 candidates of the Aquino coalition Lakas ng Bayan, namely: Jovito Salonga, Liberal Party; Agapito Aquino, Lakas ng Bayan; Orlando Mercado, Unido; John Osmena, Unido-Lakas; Edgardo Angara, Independent; Alberto Romulo, Lakas; Leticia Shahani, Lakas; Neptali Gonzales, Lakas; Rene Saguisag, Independent; Joey Lina, PDP-Laban; Wigberto Tanada, Nationalist bloc; Sotero Laurel, Unido; Heherson Alvarez, Lakas; Raul Manglapus, NUCD; Teofisto Guingona, Bandila; Vicente Paterno, Independent; Vitor Ziga, Independent; Ernesto Maceda, Unido; and Aquilino Pimentel, PDP-Laban; Ernesto Herrera, Laban; Mamintal Tamano, Laban; Santanina Rasul, independent. Only two opposition candidates make it to the Senate: Joseph Estrada and Juan Ponce Enrile, both from the opposition coalition Grand Alliance for Democracy.

 

Mamintal Tamano’s term as elected Senator of the Philippines was for the period 1987 to 1992. As a Senator, he worked for the autonomy for the Muslims and the rest of Mindanao and on Mindanao’s natural resources. Tamano also worked for the creation of a new Islamic Bank.

By 1987, there were already thirty-three Islamic banks in the Islamic countries and nine others in the western world.

In 1988, the charter of the Al Amanah Islamic Investment Bank of the Philippines was also drafted. By this time, the Philippine Amanah Bank was already perceived to be a total failure. Actually, it was already bankrupt.

To abolish and replace the PAB with a Sharia’ compliant bank, a special law, Republic Act No. 6848 was enacted in 1989. In the formulation of this law, the international Muslim bankers were consulted. Dr. Abdullah Omar Nasseef, then Secretary General of the World Muslim League, was among those consulted. Prominent Muslim bankers like Sheik Hassan Kamel and the Al Baraka Group had also been asked for advice.

On January 26, 1990, President Corazon C. Aquino signed into law R. A. No. 6848, otherwise known as the Charter of the Al Amanah Islamic Investment Bank of the Philippines. On June 25, 1991, I was designated by the office of the President of the Philippines to organize this bank pursuant to the provisions of its charter.

Republic Act No. 6848 repealed Presidential Decree No. 264, the charter of the Philippine Amanah Bank. Hence, this old bank was abolished. The services of its board of directors and all its employees were not terminated outright but they were reclassified by section 49 of the new law, RA 6848, to continue as personnel compliment  "in the interim" until the Islamic Bank shall have been properly organized.

On January 16, 1992, an audience with former President Corazon C Aquino was granted by Malacanang Palace. Then Senator Mamintal A Tamano, then chairman of the Committee on Banks and Currencies attended the meeting with Her Excellency in the Palace, with me as the sole government representative to the Islamic Bank. The senator and I briefed Her Excellency on the legal manner of organizing the Al Amanah Islamic Investment Bank of the Philippines, or Islamic Bank, for short. The senator and I were glad to have the blessing of her Excellency.

After coordinating with concerned government agencies and the private stockholders, the Islamic Bank was officially organized by a general shareholders meeting on April 28, 1992 in accordance with its charter. The chairman and president of the abolished Philippine Amanah Bank were disqualified and therefore not elected nor appointed to any position of the new Islamic Bank.

 

At the time the Islamic Bank was organized in 1992, the national government was the controlling stockholder and there were very few private stockholders with minimal investments. However, when the provisions of RA 6848 were implemented, the number of private stockholders rose to several hundreds in 1993, and more in 1994. So the equation on ownership was reversed gradually owing to the failure of the government to put up its share (Series "A") of investments. Only the private stockholders were able to put up investments by subscribing to Series "B" and "C' shares. And so from 1994, the private stockholders held the controlling interest. 

 

The enactment of RA 6848, the charter of the Al Amanah Islamic Investment Bank of the Philippines was a very important development in the area of international banking. In the years to follow, the Islamic Bank charter was believed to be a model legal framework for Islamic banking and finance that could be adopted by other countries. This charter is applicable to any country whether it belongs to the World of Muslims or to the Western World.

Today, the principles of Islamic banking now reverberate not only in the global banking industry but also in many sectors of the business world and some academies of higher learning. The ethical standards of review that are now being introduced by the so called Sharia’ advisory counsels, such as the one provided in the Islamic Bank charter, is now being adopted by western business entities.

The Sharia’ advisory boards not only consider the conventional project viability and feasibility – but they also look beyond the traditional way. This is the “Sharia’” standard which could include appropriateness, fairness, trust, transparency, the ethical nature of transactions, as well as social responsibility, especially to the poor, the wayfarer, those afflicted with illness, victims of calamities such as the “Tsunami”, and all those in need. That is why the charter provides for “zakat” or tithe. It also provides for “Qard Al Hassan” which means benevolent loans. A “zakat” is paid by every God-fearing believer for the benefit of the poor and the needy. A benevolent loan (qard al Hassan) does not bear interest and repayment may not be expected. It is provided as a loan in much the same manner as a developed country providing development assistance to an underdeveloped country. It is being practiced by the government of the United States of America through the USAID. It is also being done by the government of Japan through JICA. In the Philippines, it is being done by the government of Australia through its Direct Aid Program (DAP). These foreign nations are providing benevolent loans and financial assistance without them knowing that these loans are in the form of “qard al Hassan”.

All business dealings with Islamic banking, finance, trade, commerce, and, in fact all about Islamic economics, can be found in a common reference of all Muslims of the World today and tomorrow. This is the standard under Sharia’. It is common to all Muslims around the World. It is a standard that will never change for all time. That is a fact about Sharia. Its foundation, the Holy Qur’an will never change. The Hadith likewise will never change. Any deviation from the standard that was set by the Holy Qur’an and the Hadith is called “bida’a” and it will be rejected by any real Sharia’ counsel. Said “Bida’a“or deviation from standard will be returned to innovators. There is no compromise. For instance, interest charges maybe disguised as bank charges.  Islamic banking under the principles of Sharia’ represents a standard way of economic life. Muslims and non-Muslims alike will learn from these moral standards in all business deals. .

In its mandate to formulate the rules and regulations for the Islamic Bank, the Monetary Board in the Philippines was required by law under Section 48 of RA 6848 to observe “the universal principle of the Islamic Sharia’”.

Paramount of this significant development in international banking is the fact that the Muslim way of doing business is gaining understanding and acceptance in the world of business. This could be the start of international harmony among nations.

The charter of the Islamic Bank provides for a Sharia’ Advisory Counsel to review transactions of the bank in accordance with the Sharia’ standards. The law also provides that the Board of Directors shall sit as a Board of Arbitration to settle intra-corporate disputes among shareholders and investors. To implement this mandate, the Board of Directors was authorized by this law to set the rules and procedure that it shall follow in the arbitration while the Monetary Board was mandated to formulate the rules and regulation

The bank was formally organized on April 28, 1992. Soon after, the Rules of Practice and Procedure before the Board of Arbitration was adopted and promulgated by the Board of Directors. Even if it was rather late, the Monetary Board also issued the Implementing Rules and Regulation (IRR) for the Islamic Bank under BSP Circular 105.

Exactly ten years after its adoption today, the thickness of the IRR is back to the thinness of what it should have been. Today, with some exceptions the IRR is back to being the image-file of the charter of the Islamic Bank. It should now be known as the New Rules and Regulations (NRR) reflecting the new laws of the Millennium in the Philippines, such as the New Central Bank Act, and the New General Banking Law of 2000. And a new development in international banking and finance.

 

When the IRR for the Islamic Bank was formulated by the Monetary Board in 1996, it includes all sort of rules and regulations applicable to all banks in general including the receipt and payment of interests (riba) which is what the charter prohibits, made illegal and punishable. The rules and regulations applicable to the conventional banks under the old General Banking Act, RA 337 was also made part of the IRR for the Islamic Bank. Sad to say, the Monetary Board in the Philippines never had a Muslim member. The Monetary Board cannot be blamed for something they are not familiar with. Consequently, the Islamic Bank regular lobbyists, namely: the Filipino Muslim Chamber of Agriculture and Fisheries, Inc., ( a major stockholder of the Islamic Bank) and the National Alliance of Muslim NGOs of the Philippines lobbied in Congress relentlessly to remove, revise, or reconstruct the general banking law..

Consequently, Congress not only revised the old GBA, RA 337, but replaced it with the New General Banking Law (GBL 2000), RA 8791. Under this new law, some of the powers of the old Monetary Board were clipped, most of them transferred to the Department of Finance, and some of them to the Securities and Exchange Commission (SEC). And yet some of them were eliminated. Some other banks are now governed by other banking laws, placing the Monetary Board as “still supervising” but along with other authorities.

There are now many banking laws in the Philippines. Thrift banks, rural banks and cooperative banks are now governed by the provisions of the Thrift Banks Act, the Rural Banks Act, and the Cooperative Code. Cooperative banks are not only monitored but also supervised by the Cooperative Development Authority. Section 94 of 8791 also provides the "phase out of Bangko Sentral Powers over building and loan associations. All the relevant supervisory and regulatory powers of the Monetary Board under that Section were transferred to the Home Insurance and Guarantee Corporation.

As for the Islamic Bank, it is now governed by special laws as provided in Section 71, RA 8791 - rather than the general banking law. This governance covers the "organization" of the Islamic Bank, "its ownership and capital requirements, powers, supervision and general conduct of business".

As an update to IRR under BSP Circular 106 and in pursuance to the provisions of the new GBL 2000, the Monetary Board, in its Resolution No. 2154 dated December 15, 2000, approved Circular No. 271, Series of 2001, otherwise known as the regulations implementing Section 3 and other related sections of R.A. No. 8791. Under this new rules and regulations (NRR), the Islamic Bank is classified as one kind of its own, with its own sets of rules and regulations as distinguished from the other banks.

 

It has been a dozen years since the Philippines had no Muslim Senators.  The 10th, 11th, 12th and 13th Congresses mark the longest period in Philippine history without a Muslim senator. During this period of time, however, the Muslims enjoyed a regional autonomous government in the Autonomous Region of Muslim Mindanao (ARMM). Serving their banking needs is being done by the Amanah Islamic Bank. This is a legacy of Senator Mamintal A. Tamano. It is but fitting to formally recognize him as the brain and founder of the Islamic Bank and its predecessor, the Philippine Amanah Bank. Because he started them all in 1971, Mamintal Tamano is certainly among the founders of Islamic banking worldwide.

Senator Mamintal Tamano passed away on May 18, 1994.  Inna lillahi wa inna ilaihi raji-on. (Surely we belong to Allah and to him is our journey).

700 years of Islamic identity in RP

By Abdel Aziz Dimapunong

Imam, Masjid Alkhairi, Manila

 

 

Last Monday, February 5, 2007, the Arab News featured an article about the surviving mosques in Madinah since the time of Prophet Muhammad (peace on him). The article (P.K. Abdul Gafour) cited a study conducted by the Madinah Research & Studies Center which was done on the basis of historical evidence and authentic reports. According to Dr. Abdul Basit Badr, director of the center, there are five mosques that survived until today including the Prophet’s Mosque and Quba Mosque. Badr said his organization had identified the mosques on a map with the help of satellite pictures.

In the Philippines, several studies were also conducted concerning mosques with historical significance in this country. As early as 1986, a group of Maranaos headed by Grande Dianaton and Omama Rascal submitted a proposal to the World Muslim League for the reconstruction of Masjid Bab Arahman (Door of Mercy) which they claimed to have been originally established some 600 years ago. The proposal was submitted through the late Ambassador of the Philippines to the Kingdom of Saudi Arabia, Dr. Mauyag M. Tamano. This mosque is located in Balindong, at the mouth of the river Taraka in Lanao Del Sur, by the side of Lake Lanao. It is believed that this is the oldest mosque in the island of Mindanao. However, the proponents failed to provide a historical background of this Masjid. Nevertheless, Masjid Bab Arahaman has been reconstructed and it is now the main Masjid in Taraka. It is also a shrine where investitures of sultans in the locality are held.

Last November 24, 2006, the Philippine Senate, under the sponsorship of Senator Edgardo Angara, approved a bill on final reading that declares the Sheikh Karimul Macdum a national shrine. Based on historical records, this is the oldest mosque in the Philippines. This mosque was built in 1380, or 627 years ago. On further accounts by the historian Dr. Cesar Adib Majul, a tombstone in Bud Dato, Jolo reveals Islamic inscriptions that show a date based on Islamic Hijrah calendar. The date is 710 A.H. corresponding to 1310 A.D. That was 697 years ago. By this account, it is reasonable to infer that Islam was already in Jolo, Philippines for more than 700 years. Dr. Majul inferred “that by the end of the thirteenth century or at the beginning of the fourteenth century there was already a settlement or colony of foreign Muslims in Jolo Island.” Jolo is in the southern tip of the Philippine archipelago.

Historical account on Muslims in the Philippines

There are voluminous historical records on Moro (Muslim) history in the Philippines including that of Dr. Najeeb M. Saleeby (Studies in Moro History, Law and Religion) and Cesar Adib Majul (Muslim in the Philippines). The most relevant here is the coming of Islam to the Philippines by the historian Cesar Adib Majul. The following is the Majul account which also cited an account by Saleeby.

Begin quote.

In 878 A.D., on account of an anti-foreign policy in China and a rebellion in the Celestial Empire, hundreds of Muslims were massacred in South China, and hundreds of those who survived flocked to the ports of the Malay Peninsula. Blocked from returning to China, these traders began to engage in a local trade in Southeast Asia. They gradually came to learn about new products. When, by the tenth century, Muslim merchants were allowed once again to return to China, they did not abandon the traffic in these new products or the use of the new routs since the trade with the Malay peoples was profitable. It was a trade, too, in which the Malays began to participate intimately - especially the port chiefs. Scholars generally believe that Muslim merchants made Borneo known to the Chinese during the tenth century. Since Borneo is close to the Philippines it can be presumed that Muslims traders had begun to know Sulu at least by that time, if not earlier. In any case, there is evidence that Arab ships, or rather, ships captained by Arabs, had reached China from some island in the Philippines during the tenth century.

One of the more reliable “tarsilas” (genealogical accounts) of Sulu narrates how a certain Tuan Masha’ika arrived at Jolo Island in the area of Maimbung and married a daughter of the ruling family. He came at a time, according to the account, when the people were still worshipping stones and other inanimate objects. That his origin is associated with extraordinary events only implies that he represented and old and highly developed culture. That he was a Muslim is evidenced by the typically Muslim names of most of his children. It is also known that the term “Masha’ika” is one of the plural forms of the word “Shaikh” and was used to denote descendants of saintly people in South Arabia to distinguish them from the Sharifs or Sayids who were descendants of the Prophet Muhammad. Significantly, this tarsila account indicates that the descendants of Tuan Masha’ika began to move northward on the Island of Jolo. That they were people of note, or had prestige, can be inferred by existing accounts about them as well as by the assertion that they were also descendants of a female member of the local ruling family or aristocracy. But what is important in this particular account is that it asserts the existence of Muslims in Sulu who married into the local population.

On Bud Dato, a few miles from Jolo town, there is a tomb that has been looked after for more than six hundred years. Without going into details, the tombstone reveals that the deceased was foreign Muslim who died away from his land of origin. The date is 710 A.H. or 1310 A.D. [underscoring mine] By the nature of the care given to the grave and tombstone, and because the tombstone seems to have been imported or constructed in Sulu by Muslims, it can be inferred that by the end of the thirteenth century or at the beginning of the fourteenth century there was already a settlement or colony of foreign Muslims in Jolo island. I would like to speculate that this is the time of the coming of Tuan Masha’ika; although I am not suggesting that the Tuan and the deceased foreign Muslim were one and the same.

The “tarsilas” tell about the coming of a certain Makhdum Karim [underscoring mine] who on account of his saintly qualities was also called Tuan Sharif Awliya, this last term being used for holy men. He is said to have traveled extensively and effected conversions. Najeeb Saleeby, [underscoring mine] a student of Sulu history and the scholar who first published some of the most important “tarsilas”, wrote that the Makhdum must have come in the second half or possibly around the middle of the fourteenth century. And this calculation tallies well with the date usually given for the coming of other makhdumin to java and Balambangan. These makhdumin were probably Sufis with missionary aims. As is well known, the Sufis, (that is, Muslims with certain mystical inclinations and belonging to brotherhoods) had come to the Indonesian Archipelago at around this time to spread Islam, having fled when Baghdad fell to the Mongols in the last half of the thirteenth century. It is not really correct to say that Makhdum Karim was the first man who introduced Islam to Sulu. What probably happened was that he reinforced Islam among the foreign Muslim, or their descendants, and with their help and support and the use of their settlement as a base, he was able to effect conversions among the surrounding local and older population.

Islam must have seen by now fairly well spread among the population around Buansa as evidenced by the narration that when baguinda (prince) coming from Sumatra landed with his courtiers and warriors, the local opposition against him was weakened when some Muslims (among them the grandchildren of Tuan Masha’ika) came to his support. This was at the end of the 14th or early in the 15th century - the date is not certain. Another version has it that the religious men of both factions, that is, the Buansa party and the party of the baguinda, promoted him as ruler in Buansa – his acceptability to the datus of Buansa being induced by the fact that the Sumatran prince was a Muslim. In any case, the coming of the baguinda with learned men in Islam must have contributed to the increasing consciousness of Islam among the people of Jolo, especially those in the area around Buansa.

After this time, Islam must have been deep among the datus and chiefs of Jolo in that they were willing to accept as their Sultan a foreign Muslim known as the Sharif-ul-Hashim. This Muslim, purportedly an Arab, did not come and impose Islam or a Sultanate among the People. Rather, by the time of his arrival the datus and mass of the people had become sufficiently sophisticated in their Islamic knowledge and had developed a high enough level of Islamic consciousness that they readily accepted the political institutions required by orthodoxy. The Sharif-ul-Hashim is calculated to have arrived in Buansa around the middle of the fifteenth century. Let me emphasize that this sharif is an historical figure and not the figment of Tausug imagination. His beautiful tomb still exists on one of the slopes of Mount Tumantangis, the tallest mountain in Jolo. All his titles are inscribed on his tomb for anyone who cares to go up there and read them. It is significant that one of his titles is Maulana, suggesting that he was a guide and teacher. Actually, the conversion of the interior or mountain tribes in Jolo, the Buranuns, is credited to him. In effect, this mean that the coastal peoples of Sulu and the mountain peoples, the later possibly older in the island than he coastal folk, came to share the same faith and submit themselves to one political and spiritual head. As is well known, the sultans of Sulu have all claimed descent from his sharif, called the first sultan.

To summarize the introduction and spread of Islam in Sulu, around the beginning of the fourteenth century or possible earlier there was already a colony or settlement of foreign Muslims on the island of Jolo. They were likely traders who married local girls and died and were buried in Jolo, not without having left descendants. After the middle of the fourteenth century, Muslim missionaries appeared to effect conversions in Malay lands. They were probably Sufis and their teachings were infused with mystical overtones. Around the turn of the fourteenth century, Muslims from other Malay lands came to establish a principality. By the middle of the fifteenth century, Islam must have been quite widespread, making the local chiefs and people receptive to the adoption of Islamic political institutions, more specifically that of the sultanate.

End of quote on Cesar Adib Majul

1521-1898 - The Muslims and the Spaniards in the Philippines

1521. The first Europeans to visit the Philippines were those under the command of Ferdinand Magellan. The Spanish Expedition came on March 16, 1521. Ferdinand Magellan was killed by Lapulapu, chieftain of Filipino natives in the island of Mactan. The coming of the Spaniards was wrongly accounted for by early historians as the discovery of the Philippines.

1542. Another Spanish expedition under the command of Lopez de Villalobos followed in 1542.

1564. The conquest of the Filipinos by Spain began in 1564 when Miguel López de Legaspi arrived in another expedition from New Spain. Spanish leadership was established over some small communities in some of the seven hundred islands in the Philippines. Muslim communities in Sulu, Lanao and Maguindanao were not penetrated by the Spaniards.

1571. In 1571, the Spanish foothold in the Philippines was secured by a conquest of Manila by López de Legaspi when he established the Spanish city of Manila on the site of a Muslim settlement that was previously ruled by Rajah Solaiman and Prince Abdullah (Lakan “Dula” of Tondo).

1589. The Spanish governor made a viceroy in 1589 and ruled with the advice of the royal audiencia. There were so many uprisings by the Muslims who resented the presence of the Spaniards. By the end of the 16th century, Manila had become a leading commercial center of East Asia, carrying on a flourishing trade with China, India, and the East Indies.

1600-1663. The period from 1600 to 1663 was marked by continual wars with Muslims who the Spaniards branded as Moro pirates. This was the most persistent problem of the Spaniards. Intermittent campaigns were conducted against the Muslims but without conclusive results.

1689. When the Spaniards first explored Ranao in 1689, they found another community of Muslims in Dansalan, the commercial center of Ranao. There were battles between the Muslims and the invading Spaniards.

1898-1946. The Muslims and the Americans in the Philippines

1898. The Americans fought the Spaniards and eventually took over the Philippines after it was surrendered to them by the Spaniards on August 13, 1898. The Philippines was surrendered to the American forces by the Spaniards after a short “little war”. On December 10, 1898, the Treaty of Paris signed over Philippines to the U.S. for $20 million. Spain considered the possibility of withholding Mindanao and Sulu from the treaty by arguing that it did not have sovereignty over those Muslim territories. However, on December 21, 1898, US President William McKinley issued his “Benevolent Assimilation Proclamation”, which declared that USA would assume control and disposition of the government of the Philippines, including Muslim Mindanao and Sulu.

1913. The Department of Mindanao and Sulu was created on July 24, 1913 under the American Regime.

1940. Dansalan, the commercial center of the Maranao Muslims became a city in 1940. The inauguration did not take place because the Second World War intervened.

1946. Philippine sovereignty was handed back to the Filipinos in 1946. This was the end of all foreign incursions in the Philippine Islands.

History shows that the Muslims in the Philippines had been freedom fighters for hundreds of years. All throughout Philippine history, they maintained their identity as Muslims.

The Masjid Al Macdum that was declared by law as a National shrine is located in Tubig Indangan, Simunul in the province of Tawi-Tawi, the Southern tip of the Philippines that is just few miles away from the City of Bandar Seri Begawan, capital of Brunei Darussalam. The Masjid al Macdum was named after Arabian missionary Sheikh Karim Al Macdum, who was said to have built the mosque in 1380 AD, two hundred years before the arrival of the Spaniards in the Philippines. At about this same time, another Arabian missionary also settled in the nearby seafront town of Cota Wato, which still exists as Cotawato, the precursor of Bandar Seri Begawan. He was popularly known as Imam Ahmad who married a sister of the then ruler of Bandar Begawan. Ahmad later succeeded the ruler and became Sultan Ahmad.

Senator Edgardo J. Angara is the author of the bill that declares Macdum as a National Shrine. He is chair of the Senate committee on peace, unification and reconciliation. In his press statement on the matter, Angara said the move is an “opportune gesture of friendship to our Muslim brothers.”

Until today the four pillars of the mosque are preserved as they were originally built. Macdum himself was believe to have been buried in Tandulbanak Sitangkai, Tawi Tawi., where a simple stone marks his grave.

The 626 year old mosque has immense historic and cultural significance for our country. “Its declaration”, said Senator Angara, “as a national shrine makes it a formal part of the country’s national heritage”. Muslim leaders in the Philippines say the declaration is a milestone in Philippine history, recognition to the contribution of Islam in the development of culture and civilization.

Senator Angara was also a co-sponsor of a Philippine law that declares Eidul Adha as a National Holiday in the Philippines. The other sponsor was Senator Loren Legarda. Eidul Adha is now among regular holidays under the Administrative Code. Before the law was signed, Eidul Adha used to be just a holiday for the Muslims only. Witnessed by Muslim legislators and diplomatic personalities from the Organization of Islamic Countries, President Gloria Macapagal Arroyo signed the law last November 13, 2002 at Malacanang Palace. The law also proclaims Eidul Fitr as a Muslim regular holiday in the same way as Eidul Adha.

The Autonomous Region of Muslim Mindanao (ARMM) through its Legislative Assembly has already passed a law declaring the inclusion of the Sheikh Makhdum centennial celebration as one of the Islamic events entitled to a special non-working holiday within the five provinces under the ARMM.

Sambolayang flag of

Maranao pageantry

By Abdel Aziz Dimapunong

Director, Maranaw Cultural Heritage

The Sambolayang flags

According to Wikipedia, “a flag is a piece of cloth, often flown from a pole or mast, generally used symbolically for signaling or identification”. By this definition, the Maranaw Sambolayang is a flag. It is always made of cloth and it is flown from a pole. It is among the colorful traditional flags of Maranaw pageantry. The other flags include the Pasandalan, Pandiya Ranao, Paramata, Pandi, Usunan, and many others.

For centuries, the Sambolayang and other Maranaw traditional cultural flags had been in use in the two provinces of Ranao in the Autonomous Region of Muslim Mindanao, Philippines. Although flag-like symbols of Maranaw pageantry were in used even before the coming of the Spaniards in 1521, the origin of Sambolayang flags in the modern sense is a matter of dispute. According to Grande Dianaton of the Maranaw Cultural Heritage, some Maranaws believe that the Sambolayangs originated in China. Renayong Dimapunong has a different view. He claims that the Maranaw flags were inspired by the Srivijaya Empire during the 8^th century much earlier than Chinese influence.

When the Sambolayang is flown, it signals that there is an ongoing Maranaw pageantry. It identifies the location to be having a magnificent ceremonial display of a highly colorful event, splendid, a stately ceremony. All Maranaw ceremonies are marked with a historical or traditional flavor. The master of ceremony usually speaks of the historical background or a traditional flavor of the occasion. The event could be a royal wedding. In this case, the genealogy of both the groom and the bride serves as the historical backgrounder. The occasion could be the crowning of a Sultan, whose genealogy is presented as the historical background. The occasion could also be just a splendid display of Kalilang, a festival event that marks a holiday.

 

Various modern flags are on display at the

Provincial Capitol of Lanao Del Sur

In modern times, the ceremony could be an inauguration, or an investiture of a newly appointed or elected government official. Nowadays, the Sambolayangs are used in many ways including rallies and demonstrations. The use of the Sambolayangs now extends to corporate or political advertising. In its simplest usage, it could be used just for decorative purposes in an informal way. The Maranaw so love the use of flags. There are even house flags of various designs or form used to identify a certain family, especially those who claim to belong to a certain royal family.

The Maranaw cultural flags are potent patriotic symbols with varied wide-ranging interpretations, often including cultural and political associations due to their original and ongoing cultural uses. The existence of so many kinds of Maranaw flags coupled with various designs of royal seals as the seal of Paramata Bantugan could only mean that there were vexillographers among the Maranaws. The scholarly study of flags is known as vexillology.

The final witness of Saddam Hussein

By Abdel Aziz Dimapunong

Imam, Masjid Alkhairi, Manila, Philippines

 

Praise is to God-Alone. Praise to Him who revealed the books of guidance for mankind, including the original Holy Bible, and the Holy Quran. Peace is to Muhammad and his companions.

Friday, January 12, 2007. As Sunday is to Christendom, Friday is to Islam. Every Imam delivers a sermon to the Friday congregational prayer. In addition to preaching the Islamic Faith, the Imam may include in his sermon the religious concerns of his community. Our Shariah Council in Masjid Alkhairi suggested that I speak about the relation of the Holy Quran and the man who constantly read it. This topic came about during our Kapihan, a gathering of members of our congregation where the group talks about Islam. Somehow the discussion touches on the Holy Quran being held by Saddam Hussein just before his execution.

May I preface this article by saying that this is really for Muslims. There is no harm if it is peruse by non-Muslims, especially those interested to know about Islam and its beliefs. I suggest that it be read by prospective converts and reverts to Islam.

In the last few weeks, I had written about Islamic holiness. Last December, I wrote a blog about “Eidul Adha, a global Muslim holiday”. My previous blog was about the Holy Kaaba in Masjid al Haram that is the holiest place on earth for Muslims. This article is about the Holy Quran, the holiest thing for Muslims. It is Most Revered because it is the word of Allah (swt), the One Almighty God.

At predawn Last December 30, 2006, a day of Eidul Adha, Saddam Hussein was hanged. In Islamic reckoning based on the Hijrah lunar calendar, any day begins not after midnight as in the Western world but after sundown of a previous day. The day that Saddam Hussein was hanged was exactly the day that begins the Eid al Adha even though the sun was to rise in Baghdad at 7:06 on that Saturday morning of December 30, 2006. That day was sacred. It was Eidul Adha. It was not merely a national holiday of any Muslim country like Iraq, or Saudi Arabia, or Pakistan. It was a holiday of Muslims in U.S.A., Canada, Britain, Australia and elsewhere. It was not merely a global Muslim holiday. According to Islam, it was a sacred universal holiday for all Muslims of all times to come.

During that great Day of Sacrifice, which is the true meaning of Eid al Adha, the whole world has witness the execution of Saddam Hussein after having received a death sentence. The execution was witnessed by unauthorized video coverage. It has been leaked to the media. And now it is available for download from many websites including YouTube. According to the website at Google, the video on Saddam has been viewed by 13,257,935 as of this writing.

On his way to the gallows, Saddam Hussein brought with him his last trusted companion and FINAL WITNESS, the Holy Quran. The original copy of all available Quran on earth is the Glorious Quran that is “Inscribed in a Tablet Preserved” (Quran: 85:21-22). The original is preserved and guarded from corruption. It is located somewhere in outer space.

For twenty years during the life of Muhammad as a Prophet, peace on him, a copy of the Holy Quran was downloaded to him piece by piece in the form of Revelations through an Angel Server known as Jibreel, the messenger of Allah (swt). For two decades, this was committed to memory by Prophet Muhammad; peace on him, and some of his companions, the first community of Muslims that began the Muslim Ummah (the World of Muslim). Until today it is a practice of every Muslim to memorize the whole of the Quran. Usually, memorizing the holy book begins at an early age of seven. There are known boys who succeeded memorizing it by the age of twelve. In our Alkahiriya Madrasah (Islamic school) that used to be financed by the government of Kuwait, we had 120 boys, aged seven to 15, who were enrolled exclusively (live-in students) for memorizing the holy book. Some Muslims are still trying, yet most would have only a part of it.

Presumably as a Muslim, Saddam Hussein also had an image file or a fraction of the Holy Quran that was saved in his memory.

In the cerebrum of every Muslim resides a verbatim copy of the Holy Quran which maybe the whole of it, most of it, part of it, or a chapter. A Muslim is known as a Hafidh if he has fully memorized the Holy Quran. One could be a doubtful Muslim if one does not even know the opening chapter known as Al Fatiha. The daily Islamic prayer consists mainly of a reading of the Fatiha followed by any verses or chapter of the Quran. In his minimum of five daily prayers, he recollects from his memory some verses or a whole chapter and recites them aloud in the morning during Subuh prayer, at about 5:00 A.M. and in the evening during the Magrib prayer at around 6:00 P.M. and the Isha prayer at around 7:30 P.M. During every month of Ramadhan, a Muslim devotes his time to reading the whole of the Holy Quran. Prophet Muhammad, peace on him, reviewed the Holy Quran once a year and twice in the last year of his life.

In his regular Tarawih and Tahajud, the nightly prayers of Ramadhan, a Muslim recollects whatever verses or chapters he has stored in his memory and read them aloud and correctly while standing in prayer. If he is a member of a congregation he will listen intently to the reading of the Imam who leads the prayer. When in distress anywhere, be it in the middle of the ocean or a mountain, a Muslim will read the Quran even without a printed book because he always has a copy of it in his memory. He will read it silently, in soliloquy or aloud.

The Holy Quran contains applicable verses suitable to any particular situation; in war and in peace; in making a fight or in making love; in celebration or in distress, in famine or harvest; in the hospital or in captivity, in the face of death and everything. While in jail, Saddam Hussein had more time to read the Holy Quran in his cell even without a printed copy. He could download verses from his memory and then say it in soliloquy or aloud. He may have actually prepared himself for the submission of his life to Allah (swt). He may have followed the routine many times during his 14 months of trial, knowing that the court was only a formality. Evidently he did surrender his life to Allah in all dignity, while dressed in black overcoat, wearing a haircut, looking straight without fear in the presence of people not in sympathy to him. Thanks to YouTube and all the cellphone videos.

From the Holy Quran, the verse for the surrender of life to God-Allah (swt) can be said in less than a heartbeat, thus:

“INNA LILLAH, WA INNA ILAIHI RAJION”.

 

This does not have to be said aloud. It could be said in soliloquy. In a complete personalized statement, this could be said thus: “YA ALLAH, INNA LILLAH WA INNA ILAIHI RAJION. This means, Oh My Lord Allah, “surely I am Yours, and surely to You is my return’. In the case of Saddam Hussein, it is audible from the video that he had said “YA ALLAH”… then presumably, he engaged in soliloquy, addressing the verse of surrender to himself and to his lord.

It is reasonable to presume that Saddam already read the verse of surrender of his life not only on the gallows but when he was in captivity. When the death sentence was read to him, he knew the execution would soon follow. I strongly feel that, during the invasion of the Allied Forces, Saddam Hussein already made a plan for his death in his own preference. When captured, he made no resistance. No shot was fired from his side. There was neither fight nor flight from his end. He preferred to be captured. He later said in public that he preferred to be executed by a firing squad. Perhaps, he planned for a grandstanding way of death (the Islamic way).

In the same way as the Verse of Surrender, to die as a Muslim, one can say the appropriate verse in less than a heartbeat by saying:

“LAILAHAILLALLAH, MUHAMMAD RASULLOLLAH.”

   

This phrase is known as Sahada. Of course, when there is time, a Muslim may engage in redundancy by reciting the Sahada as many times as possible; maybe ten times, a hundred times, a thousand times, or more. This is known as Dikr, the remembrance of Allah (swt).

In the video of Saddam Hussein, it was audible that Saddam pronounced clearly the Sahada. In his last minute on the gallows, Saddam had been chanting the most appropriate words in Islam, such as Allaho Akbar, and the Sahada (There is no god but Allah, and Muhammad is his prophet). According to a witness, his last word was “Muhammad” in the verse of Sahada.

The video on the execution of Saddam Hussein says it all in Cyberspace. No one can pluto the fact surrounding the last minute of Saddam Hussein. Now it can be seen on video. It can be heard. Now it can be told unedited. Men, women, and children had witnessed what on earth man can do to another. According to Anna Johnson of the Associated Press, in “Several boys die copying Saddam hanging”, there were boys who died copying the hanging of Saddam Hussein. Johnson said, “The boys' deaths — scattered in the United States, in Yemen, in Turkey and elsewhere in seemingly isolated horror — had one thing in common: They hanged themselves after watching televised images of Saddam Hussein's execution.”

The Internet is always accessible. The video on Saddam can be viewed anytime. He is still on the spotlight even after his life on earth.

A decision of death sentence to a deposed ruler has always been a political issue. When it is followed by an execution, it is usually claimed to have been done in the name of justice. In the case of Saddam Hussein, the trial that led to a death sentence lent a veneer of formality, perhaps to the credit of American coaching on civility. In my previous blog, “Saddam Hussein on the spotlight”, I have said that the trial was at least colorable even if it was plausible. The video clips show them all.

In history, the trial and execution of a deposed ruler become the talk of the town and secrets come to the open as witnesses, jailers, even yeomen and nannies eventually relate their own accounts. In the case of Saddam Hussein, stories are now unfolding. According to John F. Burns: “In Days Before Hanging, a Push for Revenge and a Push Back From the U.S”, “the story of how American commanders and diplomats fought to halt the execution until midnight on Friday, only six hours before Mr. Hussein was hanged, is only now coming into focus, as Iraqi and American officials, in the glare of international outrage over the hanging, compete with their versions of what happened.”

In our age of technology, subterranean motives surface awhile with the use of cell phones and the Internet. But these are other stories that do not belong in this article.

Many rulers of history were hanged or assassinated, living behind unending political controversies about their death. Among those executed were: Charles I of England, 1649; Maximilian of Mexico, 1867; Nicholas II of Russia, 1917; Zulfikar Ali Bhutto of Pakistan, 1979; and Nicolas of Romania, 1989. The issues involved in those executions belong to politics. They never cease to amuse historians and political pundits.

This article is not about political issues. It is about certain Islamic belief which may be applicable to Saddam Hussein – not while he was alive but after execution. It is about trial after death.

In this connection, I am now quoting a Hadith of Prophet Muhammad, peace on him, which in my opinion, may apply to Saddam Hussein. Prophet Muhammad, peace is on him, had said:

"On the Day of Judgment, before Allah, no other intercessor will have a greater status than the Holy Quran, neither a Prophet nor an angel."

That, in my opinion, is the final relation between man and the Holy Quran. And the final witness of Saddam Hussein that he died as a Muslim, as a Muslim must die as a Muslim, as prescribed by the Holy Quran, is the Holy Quran itself.

The Holy Kaaba in Mecca

 

By Abdel Aziz Dimapunong

Imam, Masjid Alkhairi, Manila, Philippines

 

In the Islamic faith, the Holy Kaaba inside the Masjid al Haram is the holiest place on earth. The Holy Kaaba, a cube-shaped structure, is the focal point of the Muslim annual pilgrimage known as Hajj and the visitation to the Kaaba known as Umrah. The Hajj pilgrimage is one of the five pillars of Islam.

The Holy Kaaba in Masjid al Haram is located in the holy city of Mecca, in the Kingdom of Saudi Arabia. Haram is a holy land area bounded by three sides:   three miles on one side, seven miles on the second and nine miles on the third side towards Jeddah. The Holy City of Makkah lies 73 kilometers east of Jeddah. Inside the Haram, it is forbidden to hunt or even bother any living creature. It is not allowed to cut trees, not even grass. It is only permitted to kill dangerous animals such as dogs with rabies and the like of snakes, scorpions, rats, etc.

Mecca to the Muslim world is Makkah, the birthplace of prophet Muhammad, peace is on him. It is also the place of revelation of many chapters of the Muslim scripture, the Holy Quran. Mecca is Bacca in this Holy Quran (3.96 Quran). Bacca is actually the entire valley of Makkah. The Holy Kaaba in Makkah is popularly known as the Masjid al Haram. Actually, the Kaaba is inside the Haram which is also inside the city of Mecca.  

 

Background of the Holy Kaaba

It is believed that the Kaaba was built by the first man on earth, Adam. After it was forgotten for a long long time, it was found and rebuilt by prophet Ibrahim with his son, Ishmael (peace is upon them). That was more than 3,000 years ago. Today, the Kaaba stands in the middle of a complex that is popularly known as Masjid al Haram. To some, the Kaaba itself is also known as Masjid al Haram. It is the place which captures the hearts of more than a billion Muslims all over the world.  This number is ever increasing because Islam is the fastest growing religion in the world today.

The Holy Kaaba was the first house ever built for the worship of One and Only God, Allah. That is why it is called “Bait-ul-Ateeq”, meaning the oldest house. It is also called “Bait-Ullah”, meaning House of Allah. Muslims all over the world face towards Kaaba whenever and wherever they offer their five daily prayers and supplications. Muslims have been commanded by the Holy Quran to pay homage to the Holy Kaaba. Suratul Imran, the third chapter of the Holy Quran says of the first House, thus: “Surely, the first House founded for mankind is that at Becca, abounding in blessings and guidance for all peoples. In it is manifesting signs; it is the place of Abraham; and whosoever enters it, enters peace” (3:96-97). Other chapters also mentioned the Kaaba. ”And when We assigned to Ibrahim the place of the House (Kaaba), saying: Do not associate with Me aught, and purify My House for those who make the circuit and stand to pray and bow and prostrate themselves.” (Quran, 22:26). The circuit mention is the Hajj ritual of simply walking around the Holy Kaaba in prayer. The Quran also says of the builders of the Kaaba,”And when Ibrahim and Ishmael raised the foundations of the House (Kaaba): Our Lord! Accept from us; surely Thou art the Hearing, the Knowing.” (Quran, 2:127)

Prophet Ibrahim, peace be on him, founded a community of believers on a valley of a desert land by command of the All-Mighty Allah. He settled on this holy land with his wife, Hajira, and his son, Ishmael. From the progeny of Ishmael would come the greatest prophet, Prophet Muhammad, peace is on him.  He was prophesized to be a mercy for all mankind. The teaching that he brought down would be for the whole world and for all times.

 

Even though there was no sign of any provisions for food at Becca during the time of settlement by prophet Ibrahim, peace be upon him, he settled and relied on the merciful provisions of God-Allah.  In due time the provisions for food and water came in abundance. Slowly the place was populated and was called Becca. This was the place where Prophet Ibrahim, peace is upon him, found lost signs of the first House of Allah that was originally built by Adam. It was built for worship of the one and only God-Allah. It was then re-built by Prophet Ibrahim with the help of his son. Ishmael. He fervently prayed to Allah to make this house the Place for Humanity. Yet, Prophet Ibrahim’s message of the One God was gradually forgotten and pagan idolaters violated the sacred Kaaba. Only a few kept the faith until Prophet Muhammad (peace is upon him) destroyed the myriad of pagan idols in the Kaaba. The prophet restored order and reestablished the manner of Umrah and Hajj. It should be noted here that the worship of the one God-Allah, known today as Islam, predates the life of Muhammad, peace is on him. Even the Holy Kaaba and the Hajj pilgrimage predates the era of Muhammad, peace is on him. Indeed, the worship of One Almighty God has been the religion of all prophets from Adam to Noah, and to Ibrahim, Ishmael, Moses, and Isa the son of Maryam, and Muhammad, peace is on them.

Around the Kaaba is referred to as Masjid el Haram which includes the rectangular shape of the Kaaba. Pilgrims offer prayers here by facing towards the Kaaba.

 

The black stone

There is a black stone in one of the corners of the Kaaba. This stone is popularly known as Hajr-e-Aswad. It was probably part of a meteoroid that fell near Mecca. When he was rebuilding the Kaaba, prophet Ibrahim brought the black stone down and placed it inside the Holy Kaaba as a monument. It was prophet Muhammad, peace is on him, and some members of the family of Quraish who placed the black stone in one of the corners of the Holy Kaaba, the place where it is found these days.  Kissing the stone is not required but it is not also prohibited. It is optional for anyone and it is not part of the legitimate rituals while performing the Hajj. The stone has no power and it provides neither benefit nor harm to anyone.

There is a small well to the east of the Kaabba known as the Zamzam. There is a small structure in front of the door of the Kaaba which was used by prophet Ibrahim to stand on to complete the walls of the Kaaba.  There were two small hills that were located inside the Masjid al Haram. The small hills were still noticeable when I first visited the Holy Kaaba in 1977. Some big stones were still on the hills. I had stepped on them. In my pilgrimage in 1981, I did not notice the two small hills due to more improvements. In my 1986 pilgrimage, I realized that the two small hills were somewhat smoothened if not flattened for convenience.

Improvements of the Masjid al Haram that houses the Holy Kaaba continues through the years. I understand that work on a new project began on September 1988. The project includes an expansion, an addition of a new part to the Masjid al Haram. The area of the expansion floors totaled 76,000 square meters, accommodating some 152,000 worshippers. The expansion also includes furnishing the mosque’s outer yards for prayer, an area totaling 85,000 sq. meters and accommodating 130,000 worshippers. This raised the Sacred Mosque’s total area to about 365,000 square meters, accommodating 773,000 worshippers on normal days and more than one million during Hajj season and the holy month of Ramadan.  A new air-conditioning system has been devised with a total capacity of 13,500 cooling tons. New toilets were constructed covering an area of 14,000 sq. meters. The construction includes 1,440 toilets, 1,091 ablution areas and 162 drinking water taps. Separate toilets have been set aside for women.

The area of the basement expansion totaled 20,000 square meters accommodating 33,000 worshippers. The area of the first floor totaled 47,000 square meters, accommodating 77,000 worshippers, the area of the roof after improvements totaled 42,000 square meters, accommodating 90,000 worshippers. There are now 56 escalators. The Tawaf area was tiled with heat-dissipating marble, doors were renewed and a library was established. There are 55,000 lighting lamps. The connecting cables have a combined length of 3.5 kilometers.

Further expansion areas towards Al-Souq includes: basement area 19,000 square meters, accommodating 35,000 worshippers; ground floor area 19,000 square meters, accommodating 35,000 worshippers and first floor 16,000 square meters, accommodating 27,000 worshippers.

The current structure covers an area of 356,800 square meters including the outdoor and indoor praying spaces and can accommodate up to 820,000 worshippers during the Hajj period.

It’s been eleven years since my last visit to the Holy Kaaba. How I long to perform another Hajj pilgrimage again and visit the Holy Kaaba, the center of the Muslim world.

xxxxx

 

 

Related article.

 

 

My previous blog entitled: “Eidul Adha, a global Muslim Holiday” is very much related to this article. It is actually a part of the historical background of the Kaaba inside Masjid al Haram.

 

Eidul Adha, a Muslim global holiday

 

By Abdel Aziz Dimapunong

Imam, Masjid AlKhairi, Manila, Philippines

 

Today, December 30, 2006, is a Muslim holiday. The exact date is the corresponding date in the lunar Hijrah calendar which is the tenth day of the Islamic month of Dhul Hijjah. This holiday is called Eidul Adha to the Arabs, Eid-e Qurban for Persians and Kurban Bayrami for Turkish.  The exact spelling is the corresponding Arabic script. If one has to search the Internet about it, the spelling in English could be Eidl Adha, Eid ul Adha, Eid al-Adha, or Eidul Adha.

 

In my country, the Philippines, Eidul Adha is recognized officially by the Government as a Muslim holiday. By virtue of a law which was recently signed by President Gloria Macapagal Arroyo, Eidul Adha is now a National Holiday in this country. It is among regular holidays under the Administrative Code. Before the law was signed, Eidul Adha used to be just a holiday for the Muslims only.  Witnessed by Muslim legislators and diplomatic personalities from the Organization of Islamic Countries, President Gloria Macapagal Arroyo signed the law last November 13, 2002 at Malacanang Palace. The law also proclaims Eidul Fitr as a Muslim regular holiday in the same way as Eidul Adha. The Eidul Fitr takes its name from the Fitrah which is an obligatory religious Tax (Zakat) to be paid by all financially able Muslims. Fitra becomes due and obligatory upon sighting of the moon of the month of Shawwal and in the Hijrah calendar. Fitra is recommended to be paid before the prayer of Eidul Fitr.

Eidul Adha marks the completion of the annual hajj, the pilgrimage to the holy cities of Makkah and Madinah.  On this occasion, I wish every Muslim a great holiday and I congratulate all who perform the annual hajj this year. At the end of the Hajj, Muslims throughout the world celebrate the holiday of Eidul Adha.

Eidul Adha is also known as the Festival of Sacrifice. The sacrifice is called Qurban.  It lasts for three days and commemorates Ibrahim's (Abraham) willingness to obey God-Allah by offering to sacrifice his son, Ishmael. It was with a heavy heart that Abraham agreed to sacrifice his son but he was ready to show his loyalty to his Lord. The feeling of Abraham's son, Ishmael, was also the same as that of his father. Both of them were committed to follow the commandment of God-Allah.  Abraham drew his knife to slaughter his son but just as the knife drew near, God-Allah intervened and Ibrahim's son was replaced by a sheep. Ibrahim and Ishmael were was so happy that they were relieved when they saw that it was a sheep that was slaughtered. Ishmael was safe. God-Allah had asked Ibrahim to sacrifice his son to test his faith in Islam and when Abraham proved that he was willing to do it, God-Allah did not need him to commit the slaughter of his beloved son. Being obedient to God-Allah, Ibrahim is described in the Holy Quran as follows: "Surely Abraham was an example, obedient to Allah, by nature upright, and he was not of the polytheists. He was grateful for Our bounties. We chose him and guided him unto a right path. We gave him good in this world, and in the next he will most surely be among the righteous." (Qur'an 16:120-121)

The Feast of Sacrifice re-enacts Ibrahim's obedience to God-Allah. It is done by pilgrims and all Muslims by sacrificing a cow, a ram, or a goat. The family eats about a third of the meal and donates the rest to the poor.

During the Hajj, the pilgrims perform rituals in remembrance and in commemoration of the trials and triumphs of Prophet Ibrahim, peace is on him.

Ibrahim’s trial was to face the command of Allah to kill his son, Ishmael, as a sacrifice. Upon hearing this command, he prepared to submit to Allah's will. When he was all prepared to do it, Allah revealed to him that his offer for sacrifice had already been fulfilled. He had shown that his love for his Lord was above all and everything else, that he would lay down his own life or his son in order to submit to God-Allah.

During the celebration of Eid al-Adha, all Muslims commemorate Ibrahim's trial by slaughtering an animal such as a cow, sheep, camel, or goat. The meat from the sacrifice of Eid al-Adha is mostly given away to others. One-third is for the family and relatives, two-thirds for others, especially to the poor. The act symbolizes a Muslim’s willingness to give certain things, in order to follow Allah's commands. It also symbolizes a Muslim’s willingness to give up one’s own bounties in order to strengthen ties of friendship and help those who are in need.

On the morning of every Eidul Adha, Muslims around the world attend morning prayers at their local mosques or any suitable places. Eidul Adha begins with a short prayer (Salat) followed by a sermon (Kutbah) that is delivered by the Imam.  For the pilgrims in Makkah, the sermon is delivered from Mount Arafat. For others, prayers are followed by visits with family and friends, and the exchange of greetings and gifts.

The charitable practices of the Muslim community are demonstrated during Eidul Adha by the concerted effort to see that no impoverished Muslim is left without sacrificial food during this day. On his last pilgrimage, Prophet Muhammad, peace is on him, pronounced the final seal on the religion of Islam, coming immediately after the Day of Mount Arafat. The day before Eid al-Adha is the Day of Arafat' or the Day of Hajj when millions of Muslims make the journey to Mecca in Saudi Arabia to perform a pilgrimage of religious rites known as the Hajj. 

Virtually all of the rites and rituals of Hajj are based on the actions of Prophet Abraham. These acts were re-implemented by Prophet Muhammad, peace is on him. Even the Kaa'ba, also known as Masjid El Harram, in Makkah was originally built by Abraham and his two sons. Masjid El Harram is now a huge complex. Within this complex Masjid is located a holy plinth to remind pilgrims of Prophet Ibrahim and Ishmael.

During Eidul Adha, Muslims greet each other by saying "Eid Mubarak". On this occasion, may I say Eid Mubarak to everyone.