Sharing Usury that is masked with the label “Shari’a”
Inside the practice of mudharaba product in shari’a bank, there is a controversial stipulation, that is: the mudharib (fund manager) is required to give full warranty over the fund lent by bank from any kind of loss. The product is considered as a new invention in mudharaba that is never been seen before. It is called mudharabah musytarakah.
mudharabah musytarakah is a combination of two words, mudharabah and musytarakah.
The meaning of mudharaba is transaction of investment between the funder (money/asset owner/shahibul mal) and the fund manager (mudharib) to start a certain business with profit-sharing system based on percentage agreed by both parties, whereas the loss of capital will only be borne by the funder.
Musytarakah means: union, combination or group. Thus essentially, Mudharabah musytarakah is a common mudharaba modified into a product of shari’a bank to replace saving/deposit with interest of conventional bank.