Usurious investment schemes are haram, says sharia lawyer

DAVAO CITY – A General Santos City-based Islamic law expert reminded Muslims that it is haram or forbidden for them to join money-making usury investment schemes.

Salih Musa, also a sharia lawyer, said among these investment schemes is Kapa or Kabus Padatuon (Make the Poor Rich), an evangelical group founded by former teacher Joel Apolinario.  

In a Facebook post, Musa said the interest that these investment schemes are considered “riba” or usurious.

“Muslims are not allowed to become members of Kapa investment because it is religion-based,” he said.

Musa said joining Kapa investment is like participating in idolatry or polytheism and is therefore prohibited.

“Shirk (idolatry) is the greatest sin in Islam,” he added. 

As to other investment schemes, Musa, who also previously headed a sharia court in Central Mindanao, said that it is also forbidden for Muslims to participate in schemes that give outrageous returns as it is already a form of usury.

He said while trading is permitted in Islam, usury is not, citing Verse 275 under Chapter Al Baqarah of the Koran that said:

“Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.”  –