Is it permissible for a department head in a public utility to participate in distributing monetary amounts remaining from work contracts for the utility, which are assigned by a higher authority, knowing that these amounts are distributed to a group of officials and dedicated employees, to the exclusion of other employees who do not provide a service to the utility?

This money, remaining after settling the dues of project implementers, belongs to the state and must be returned to it. It is not permissible to dispose of it unless government law allows it; otherwise, it would be considered theft of public funds and a betrayal of trust. An agent is not permitted to dispose of their principal's money except as authorized.

You must inform the director and higher authorities that this is impermissible. If they do not respond, escalate the matter to their superiors. As for any of this money that came into your possession previously, if you can return it to the state treasury, do so; otherwise, spend it on the welfare of Muslims, such as assisting the poor and needy.