Islamic Banks and Equities

Q:

1. Could you please explain the rulings regarding Banking with Islamic Banks (Absa Islamic, Albaraka, Etc). A friend of mine said to me it is all a scam and the Scholars involved are there to make a quick buck, and I should regard the profits as interest? Is this correct and what is your advice and explanation if possible, as i would like to take it up these banks for an explanation?
2. Similarly, what is the ruling regarding investing in Equities with scholars on their board (Albaraka Futregrowth, Oasis Cresent, Etc.?)

A: 

1. We are not absolutely clear with the operations of Islamic banks. However, if any particular case is brought before us we will be in a position of ruling in favour or against. It is difficult for us to generalise their operation.
2. As above.

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)