He—may Allah have mercy on him—was asked:

“When the ruler collects zakat, whether the tithe or other forms, and spends it wherever he wishes without giving it to the poor and needy, does this discharge the obligation or not?”

He replied:

As for the tithe, zakat on livestock and trade goods, and other such dues collected by Muslim rulers, paying them discharges the owner’s obligation, by scholarly consensus, if the ruler is just and distributes them through their prescribed lawful channels.

If, however, he is unjust and does not distribute them through their prescribed lawful channels, the owner should not pay zakat to him, but should distribute it himself to those entitled to it. If he is compelled to pay it to the unjust ruler, such that he would suffer harm if he withheld it, then this payment discharges his obligation in that situation according to most scholars.

In this case, the rulers have wronged those entitled to the zakat, just as an orphan’s guardian or an endowment’s administrator does when taking possession of the funds and spending them for purposes other than those prescribed.