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Fatwa CenterFailed to disclose his business interests as required for his position
Question
A friend of mine holds public office on a committee responsible for advising the municipal authority (local government) on policy issues concerning economic development and improvement of community facilities. He was elected to this position by the voluntary associations and charitable organizations of our town.
The committee’s code of conduct states that all members should make a public declaration of any private or business interests they have that could be relevant to the policy issues for which the committee is responsible. They do not necessarily have to withdraw from the committee if they have such an interest, but they must register their interest for the public record in order to protect the integrity of the committee's standing in the community.
My friend set up a company a year ago with the intention of obtaining a contract to manage a local entertainment venue. He and his wife are directors of that company.
The future of this venue became a key issue for the committee on which he serves. My friend did not declare his directorship of the company during meetings of the committee at which the entertainment venue was discussed and recommendations to government were agreed. Other members of the committee did not know of his involvement with the company. He knew that they did not know.
Other members of the committee recently became aware of my friend’s interest in the company and have accused him of behaving in an unethical manner. They say that the public had a right to know about any private interests that could have influenced my friend’s recommendations on the venue’s future.
However, my friend argues that just because he did not tell his committee colleagues and the public about this business interest it does not mean he was behaving in a deceitful manner. He says that he intended the company to be run on a not-for-profit basis so it should not be considered as a business interest.
His colleagues have said that the code of conduct, whose contents he accepted when joining the committee, requires that such interests are declared. They say the code states that not-for-profit companies should be declared, not only profit-making ventures. (I have checked and it does state this requirement).
I too believe that my friend may have behaved improperly in this matter and against Islamic principles. I have recommended that he should apologize to his colleagues and the public, and seek their forgiveness. Please advise.
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad 
is His slave and Messenger.
Fulfilling one's promise is one of the most important characteristics of a Muslim. Allaah says (what means): {…[those who] fulfil their promise when they promise…}[Quran 2:177]
Cheating and deceiving is one of the characteristics of hypocrites. The Prophet said about the qualities of a hypocrite: "And when he promises, he does not fulfill his promise." [Al-Bukhari and Muslim] So it is an obligation on a Muslim to fulfill the conditions that he has promised to fulfill as long as they do not contradict the legislations set by Allaah. The Prophet said: "Muslims should honour their conditions." [Abu Daawood]
There is nothing that contradicts Islamic legislations in what has been mentioned in the question, so the brother in question is wrong by not informing the public about his directorship of that company, since informing them does not cause any harm to him. It should be mentioned that when Muslims fulfill their promise, especially in non-Muslim countries, this has a good effect in informing its citizens about the bounties of this religion. This has a positive effect for them embracing Islam. However, his cheating and deceiving could have a negative effect and hinder them from embracing Islam.
Finally, it should be noted that it is not permissible to reside in non-Muslim countries except for a necessity or a dire need.
Allaah Knows best.
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