The Diwan is a name given to the place where the secretaries sit down to work and records are kept. It is also a name given to the records themselves, and there is an attachment between the two meanings.

The first established Diwan

The first establishment of Diwans and designation of a place to keep them in was at the time of ‘Umar b. Al-Khattab in the year 20AH. In the life time of the Messenger of Allah (saw) , the Treasury did not have a reserved Diwan though the Messenger of Allah (saw) did appoint secretaries to keep record of the funds. He appointed Mu’ayqeeb Ibnu Abi Fatima Aldusi as secretary of the spoils (Al-ghanaim), and Zubayr Ibnul Awwam as secretary of the Sadaqat, Huzaifah Ibnul Yaman as secretary over the agricultural produce of Hijaz, and Abdullah Ibnu Ruwaha as secretary over the agricultural produce of Khaybar. Al Mughira Ibnu Shu’ba was appointed as secretary for the loans and transactions, while Abdullah Ibnu Arqam was a secretary for the records of the tribes and their water. However, the Messenger of Allah (saw) did not keep any Diwans nor did he set up a place for keeping them and writing them. This went on during the Khilafah of Abu Bakr . However, things changed when ‘Umar b. Al-Khattab became Khalifah, and the conquests increased. This consequently increased funds pouring into Madinah, which necessitated the setting up of diwans and writing records and designating places for keeping them and writing them.

It has been reported that the direct reason behind establishing the Diwans was because Abu Hurayra once brought to ‘Umar a large amount of funds from Bahrain. So ‘Umar asked him: “What have you brought?” He said: “I brought you five hundred thousand Dirhams (500,0000).” ‘Umar said to him: “Do you know what you are talking about? You must be tired, so go to sleep and come and see me in the morning. When he came the next day, ‘Umar asked him ‘How much is it?’ Abu Hurayra said: ‘500,000 Dirham.’ ‘Umar enquired: ‘Is it legitimate (Halal)?’ Abu Hurayra replied: ‘I know nothing else but that. Upon this ‘Umar stepped up the Mimbar, praised Allah (swt) and glorified Him, then said: ‘O people! A large amount of funds has reached us, so if you wish we can divide it among you in measure or if you wish we can count it. A man from among the people said: “O Amir al-Mu’amineen!, Why don’t you set up account books (Diwan) so that you can record whatever you give to people.’”

Al- Waqidi reported: Verily ‘Umar b. Al-Khattab consulted the Muslims about setting up the account books (Diwans). Ali said to him; “Each year, you should divide all the funds you receive without holding back anything.” Uthman said: “I can see that there are large amounts of funds to be given to the people, if these people are not counted to help keep track of who has taken from who has not , I fear that things could get out of hand.” Upon this Al-Walid Ibnu Hisham Ibnul Mughira said: I have been to Ash-Sham and I learnt that its Kings had set up an account book(Diwan) and recruited conscripts (for war), so why don’t you do the same? ‘Umar took up his advice and summoned Aqueel Ibnu Abi Talib and Makhrama Ibnu Nawfal, and Jubayr Ibnu Mut’im who were of the genealogist of Quraysh, and said to them: Go and carry a house to house census. So they began with Bani Hashim, then with Abu Bakr and his folk then ‘Umar and his folk, then they counted the tribes and reported back to ‘Umar. When ‘Umar looked at the census he said: No, I did not want it to be like this, however, do start with the family of the Messenger (saw), then the nearer to them and so on until you put ‘Umar where Allah (swt) has put him.

This, as far as the Diwan (account book) of the grants and the conscripts is concerned, and it was written in Arabic. As for the Diwan of the payment time and fund collection, the case was different. The Diwan of Iraq was written in Persian as it was the case in the times of the Persian empire, so was the Diwan of the countries which were under the Persian ruling. Thus the Diwan of their land tax and Jizya, payment time and funds collection were written in Persian. As for Ash- Sham and the areas which were ruled by the Romans, their Diwan was written in Roman as it was the case when these were ruled by the Romans. This went on since the days of ‘Umar b. Al- Khattab until the time of the Khilafah of the Umayyad Abdul Malik Ibnu Marwan, when in the year 81AH the Diwan of Ash-sham was transferred to Arabic.

It has been reported that what led Abdul Malik Ibnu Marwan to transfer the Diwan from Roman to Arabic was that the Secretary of the Diwan who was Roman, was once in need of water for his inkwell so he urinated in the inkwell instead of putting water. Abdul Malik heard of this and rebuked him; then he ordered Sulayman Ibnu Sa’ad to tranfer the Diwan to Arabic. So he asked him for assistance by making the Kharaj of Jordan available to him for one year. He agreed and appointed him Wali over Jordan, whose Kharaj was 180,000 Dinars. It took Sulayman less than a year to complete the translation of the Diwan into Arabic. He took it to Abdul Malik Ibnu Marwan who then summoned his Secretary Sarjoon and showed it to him. Sarjoon was saddened by this and left Abdul Malik’s court dejected. Other Roman clerks met with him, so he said to them: “You better seek another way of earning your living, for Allah (swt) has taken away this provision from you.”

As for the Diwan of Iraq, it was Al- Hajjaj Abdul Malik’s Wali over Iraq that ordered his Secretary Salih Ibnu Abdul-Rahman to transfer it from Persian into Arabic. Salih was fluent in both languages, so he agreed to do this and was given time to complete the task. When the Persian Secretary of Al- Hajjaj, Muradnashah Ibnu Zadan Farukh, heard of this, he tried to bribe Salih with 100,000 Dirham in order to pretend his incompetence, but he refused. So he said to him: May Allah (swt) dissect you from this life as you have dissected the Persian language.

The State Treasury (Bait-ul-Mal) is the competent authority in charge of all the State’s revenues and all the expenditures for which the Muslims are eligible. So every property, be it land, buildings, minerals, money, or merchandise for which the Muslims are entitled, according to the divine rules, but the person entitled for its ownership has not been designated though the area upon which it is spent is determined; such property would be a rightful property of Muslims’ Treasury, regardless of whether it is already in the sanctuary of the Treasury or not. Likewise, every property due to be spent upon its beneficiaries and rightful owners, or in the interests of the Muslims and their affairs, or in carrying the Islamic Daw’ah; all such funds area duty upon the treasury, regardless of whether the funds are spent or not. Therefore, the Treasury in this context, is the competent authority.

The Treasury is also a term used to describe the place where the funds which are the state’s revenues are kept and from which they are spent.

The first Treasury to be established, meaning the competent authority, was after the Revelation of Allah (swt) of the following verse: “They ask you about spoils of war. Say such spoils are at the disposal of Allah (swt) and the Messenger (saw): so fear Allah (swt) and keep straight the relations between yourselves, and obey Allah (swt) and His Messenger (saw) if you do believe.” [Al-Anfal: 1]

This was revealed in the wake of the battle of Badr, when the Muslims engaged in dispute over the spoils of war. Sa’eed Ibnu Jubair reported: I asked Ibnu Abbas regarding the Surah of Al-Anfal. He said: “It was revealed in Badr.” The spoils of Badr were the first funds the Muslims gained after the spoils of Abdullah Ibnu Jahsh expedition, Allah (swt) demonstrated the rule concerning their distribution. He made the spoils the property of the Muslims, and He commissioned the Messenger of Allah (saw) to dispose of them according to what he deemed in the best interest of the Muslims. So they were the property of the Treasury, to be disposed of by the guardian of the Muslims according to what he deemed in their best interest.

As for the Treasury, meaning the place where the revenues are kept and from which expenses are spent, this did not have a specific place during the lifetime of the Messenger of Allah (saw) , for at that time, the revenues were limited and there was hardly anything left after what had been distributed amongst the Muslims and spent in looking after their affairs. The Messenger of Allah (saw) used to distribute the spoils and the fifths (Al-Khums) at the end of each battle. He (saw) would not delay the distribution of the funds or spending them to their eligible categories. Hanzalah Ibnu Sayfi, who was a clerk to the Messenger of Allah (saw) , reported: “The Messenger of Allah (saw) said to me: “Accompany me and remind me of everything, for no later than three days.” He (saw) said: ‘so I kept on reminding him for three days about any fund or food or any money I received.’ So the Messenger of Allah (saw) would not spend the night except after the disposed of everything.’” Most of the time, the funds used to be distributed on the same day. Al-Hassan Ibnu Muhammad (saw) reported that the Messenger of Allah (saw) never used to keep any fund till late in the day or overnight, “i.e. if he (saw) received it in the morning, he would distribute before noon, and if he received it in the evening he would spend it and would not keep it overnight.” Therefore, there never used to be any saved funds that needed to be kept in a place or on record.

This state of affairs continued during the lifetime of the Messenger of Allah (saw) . When Abu Bakr was appointed Khalifah, he continued on that course in the first year of his Khilafah. He used to bring any funds that reached him from any region to the mosque of the Messenger of Allah (saw) and distribute them among those entitled. He appointed Abu Ubaidah Ibnul Jarrah as his deputy in this matter. Abu Ubaidah said to him, when he held this post: I will look after the funds on your behalf. Abu Bakr however did in the second year of the khilafah establish a starting point for the treasury, where he assigned a place in his house to place in the funds which came to Madinah, and he used to spent all of that on the Muslims and their affairs. When Abu Bakr died and ‘Umar was appointed Khalifah , he gathered the trustees and entered Abu Bakr’s house. He opened the treasury and found one single Dinar which had fallen from a sack. When the conquests had intensified during the Khilafah of ‘Umar, and the Muslims conquered the lands of “Kisra” (Persians) and “Qaysar” (Romans), the funds increased and poured into Madinah, so ‘Umar designated a house for them. He set down for them account books and appointed accountants, allocated grants from them and equipped the armed forces, though he used to sometimes place the fifths of the spoils that reached him in the mosque and distribute them without delay. Ibnu Abbas reported: “Umar once summoned me, and when I got there he was sitting before a rag with the gold scattered over it like hay. He said: Come on and divide among your folk, for Allah (swt) knows best why He did hold this from His Messenger (saw) and Abu Bakr and He gave it to me?, Did he want good or bad by this?” Abdul Rahman Ibnu Auf reported: “Umar summoned me once at noon, so I went to him. When I entered his home, he took me by the hand and led me to a room where the parcels were stacked on top of each other. He then said: “Now the family of Al-Khattab became lowly before Allah (swt), by Allah (swt) if we were to be honoured by this, Allah (swt) would have given it to my two companions and they would have set for me a precedent to follow them in this matter..” Abdul Rahman said: “When I saw what he has brought I said to him. ‘Sit down O Amir of the believers, and let us think.’ He said: ‘we sat down, we wrote down the people of Madinah, we the Mujahideen in the way of Allah (swt) and the wives of the Messenger of Allah (saw) and then we wrote the others.’”

Thus, the Muslims turned to have an established Treasury where the funds were collected, the books of record were kept, from which the grants were given and the funds were paid to their beneficiaries.