What is the evidence from the Qur’an and Sunnah for the permissibility of giving money from the public treasury to a poor repentant person (a prostitute or an alcoholic) to meet their needs or to serve as capital for them? Did this occur during the time of the Companions? And does this contradict the Hadith: "Every flesh that grew from unlawful earnings, the Fire is more deserving of it"?

If a needy person takes ill-gotten money for his sustenance, it becomes permissible for him, because the state of poverty and need becomes a legitimate channel for this money. Al-Nawawi, quoting Al-Ghazali, said: "If it is given to a poor person, it is not forbidden for the poor person; rather, it is permissible and good. He may give charity from it to himself and his family if he is poor, because if his family members are poor, then the description [of poverty] applies to them, and indeed they are more deserving of charity. And he himself may take from it what suffices his need, for he is also poor." This does not contradict the hadith (definition): "Indeed, no flesh that grew from ill-gotten gains will enter Paradise; the Fire is more deserving of it," due to the generality of Allah's saying: "But whoever is forced, neither desiring nor exceeding, there is no sin upon him. Indeed, Allah is Forgiving and Merciful."