Is working as a Procurement and Maintenance Supervisor, and submitting price quotes from my own establishment to the company I work for at a cheaper price and with the director's approval, then selling the product to the company in the name of my establishment, considered an unlawful act?
A purchasing agent buying for his company from his own establishment is an agent buying from himself, and scholars have differed on its ruling. Some have absolutely prohibited it, while others have permitted it when suspicion is absent.
Examples of juristic opinions: Hanafi school: They permit an agent to sell to himself if there is no suspicion. Maliki school: They do not permit an agent to buy for himself or sell from himself, except in the presence of the principal or by specifying the price. Shafi'i school: They do not permit an agent to sell to or buy from himself or his child, even if the principal authorizes it, due to conflicting interests. Hanbali school: An agent's sale to himself or purchase from himself on behalf of his principal is not valid unless the principal permits it, to eliminate suspicion.
Scholars agree on prohibiting this when suspicion exists. In this case, since the agent is commissioned to obtain price quotations, he is suspected of manipulating the process to obtain higher quotations than his own establishment's offer. Therefore, his purchase from his own establishment is not permissible, and the suspicion is not removed except by the permission of the company owner, not the branch manager's permission.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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