Zuma refers controversial bank bill to Parliament

South African President Jacob Zuma has referred the controversial Financial Intelligence Centre Amendment Bill back to the National Assembly for reconsideration, the Presidency said on Tuesday.

"I have given consideration to the Bill in its entirety and certain submissions regarding the constitutionality of the Bill. After consideration of the Bill and having applied my mind to it, I am of the view that certain provisions of the Bill do not pass constitutional muster," presidential spokesperson Bongani Ngqulunga quoted Zuma as saying.

In line with the Constitution, Zuma has therefore referred the Bill to the National Assembly for reconsideration for the reasons set out to the Speaker of the National Assembly, the spokesperson said.

The president specifically raised concern with the provisions of the Bill relating to warrantless searches, which, according to him, fall short of the constitutional standard required for the provision not to unjustifiably limit the right to privacy, according to Ngqulunga.

Zuma was of the view that even though the purpose to be served by the Bill was very important and pressing, all the provisions of the Bill must be in line with the Constitution, Ngqulunga said.

The Bill is meant to impose more onerous obligations on banks to know their clients and in particular politically exposed persons such as politicians, government officials and directors of companies contracting with government.

Zuma has been criticized for stalling the Bill as part of an attempt to "clip the independence and powers" of Finance Minister Pravin Gordhan and the South African Reserve Bank (SARB).

The Business Day newspaper reported earlier this year that the developments surrounding the Bill "form part of an orchestrated attack by parts of the government and the ANC (African National Congress) aligned to Zuma on the Treasury, Finance Minister Pravin Gordhan, and the Reserve Bank, with a view to clipping their independence and powers."

That was the reason why the Bill has not yet been signed into law, the report alleged.

The Presidency refuted the report as "a gross distortion of the facts."

According to the Presidency, the president received an objection to the signing of the bill from the Progressive Professionals Forum.

Critics of Zuma's long delay in promulgating the law claimed that he is trying to protect those benefiting from corruption, such as the wealthy Indian Gupta family accused of exerting undue influence on Zuma in the appointment of cabinet ministers. Endit