TEMPO.CO, Jakarta - It took some time to locate the office of the Islamic Food and Nutrition Council of America (IFANCA) in a small town just outside of Chicago, Illinois. Last March, Tempo was able to meet with the Council's president, Muhammad Chaudry, 70, who is well known among businesses dealing in halal (allowed) products. In Indonesia, he is also known for inviting officials of the Indonesian Ulama Council (MUI) to attend conference he organizes.
Tempo's reason for interviewing Pakistan-born Chaudry was to query him on reports which cite him as bribing the MUI, as a commission for officially recognizing IFANCA as a halal certificate provider for food and drinks produced in the US. Excerpts of the interview:
Can you confirm that you paid the MUI a fee to officially acknowledge your organization as a halal certificate organization?
There was a fee, which we paid because it was a business agreement. There was also taxes. And it wasn't just with the MUI, other organizations also did the same.
Isn't paying a fee prohibited?
Can you show me which regulation I violated? If the agreement with the MUI is legally flawed, the document can be annulled. As far as I know, no policy in the US or in Indonesia is against that agreement. In business, there must be a reason for a fee. Everyone wants to be paid for the service they provide. This is normal administrative fee. And during the two year period of that agreement, there was no activity, so nothing was paid.
So, what was the reason for that fee?
You must understand how this certification process works. We meet the criteria required for products to be labeled halal. We become the organization pronouncing a certain product as halal. In other words, we meet the criteria of the MUI.
Why such a huge amount? In the agreement, it said 40 percent of the halal label tariff…
That's just administrative fee. Again, it's normal when doing business.
Did you give it to the institution of MUI or its officials?
I say again there was no money involved in the agreement. Nothing. There was no bribe. In business, there are expenses that must be borne by a halal certificate company.
We just want to know whether there was bribery in this case.
That didn't happen. We cannot bribe anyone in this country or anywhere else. The money was paid to the organization, not individuals.
Are you acquainted with Amidhan Shaberah?
I know him very well. He has come here repeatedly with his team. The last time was in 2013 for a conference, whose travel and accommodation we paid for.
In your view, that's not bribery?
I have known the MUI since 1989. This institution is very credible. In implementing the halal business, the MUI cannot travel to each country because it costs too much. If a country wants certification, it has to bear all the expenses, except if you can convince your government to bear all the expenses, like Malaysia. You say we paid to get legality as a certification agency, but in fact, that cannot be proven.
Who pays the expenses when the MUI comes to audit the contract?
The MUI has its own regulations. The costs are sometimes borne by the government, sometimes by companies. The US government is also responsible for the imports. Besides IFANCA, I don't know how much it would cost.
How much would it cost if the invitation came from IFANCA?
I can't say.
Is it true IFANCA and the Halal Food Council of Europe are owned by the same people?
That is correct, that's general knowledge. IFANCA in the US, HFCE in Belgium. Muhammad Sadek is the director of IFANCA and is president of HFCE. My position is the other way around, because no two people can hold the same position. (*)
