Five Pillars, based in Singapore, was appointed by the Manager to act as the Shari’ah Adviser. Five Pillars
serves as a conduit between the Independent Shari’ah Committee (“ISC”) and the compliance officer of the
Manager, liaising frequently on Shari’ah matters throughout the year.
The ISC comprises eminent scholars and experts. They are:
• Dr Mohamed Ali Elgari (Professor at King Abdulaziz University in Saudi Arabia);
• Professor Dr. Obiyathulla Ismath Bacha (Professor at the International Centre for Education in Islamic
Finance in Malaysia); and
• Dr. Ashraf bin Mohammed Hashim (Associate Professor at International Islamic University Malaysia)
The Trust follows the standards promulgated by the Auditing and Accounting Organisation of the Islamic
Financial Institutions and/or the Islamic Financial Services Board. To assess on-going compliance of the Trust,
the Shari’ah Adviser, on behalf of and working closely with the ISC:
• Prior to the issuance of the Shari’ah certificate for annual status, inspects and verifies the properties
and activities of the Trust. A representative of Five Pillars will visit the individual properties in the portfolio
to ensure that businesses on the premises are compliant and agree with the leasing contracts signed.
For FY 2014, the Trust successfully passed the inspection. The Trust’s purchase of the asset at 10 Changi
South Street 2 Singapore 486596 underwent a similar inspection prior to the completion of the acquisition.
• For new funding, consent will be obtained on inception. Shari’ah certification and other supporting
documents from the issuing or arranger bank will be vetted and approved by the ISC. For FY 2014,
the Trust has not utilised interest-based borrowing or other non-Shari’ah compliant financing.
On completion of the annual audit, the ISC will sign off and issue the certificate which will be delivered by the
Shari’ah Adviser to the Manager. The Trust has successfully renewed its annual Shari’ah certificate, valid till
31 December 2015. The certificate is displayed on the Trust’s website at
. The total
amount of fees incurred for Shari’ah advisory services for the financial year ended 31 December 2014 is
approximately S$94,000.
Under Shari’ah principles, provisions are made for remedial actions. In the event of a breach or deviation, the
Manager must disclose as soon as practicable to the Shari’ah Adviser and the ISC the necessary details and
supporting documents. Rectification as advised is applied to the particular activity within an agreed time frame
before any distributions are made to Unitholders.
CORPORATE GOVERNANCE
SABANA REIT
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ANNUAL REPORT 2014
84
