S. African MPs to challenge Zuma over controversial bank bill

A bank bill aimed at fighting financial crimes is constitutionally sound although President Jacob Zuma has refused to sign it into law, Chairperson of Parliament's Standing Committee on Finance, Yunus Carrim said on Tuesday.

Last week, Zuma referred the Financial Intelligence Centre Amendment (FICA) Bill to Parliament, saying certain provisions of the Bill do not pass constitutional muster.

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.

"These are the views of the lawyers in the Presidency. Other lawyers may come to a different opinion. Parliament will reconsider the bill carefully, but MPs are convinced that the bill is constitutionally sound," Carrim said in Parliament.

"Without the FICA bill, part of what we are doing here does not carry weight. We have to act against financial crime and we have to expedite the process," Carrim 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 the 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.

MPs of opposition parties argue that Zuma's failure to sign the bill would frustrate the efforts to fight financial crimes.

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 claim 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.

Parliament will not tremble and buckle because the Presidency's lawyers advised Zuma to reject the Bill, Carrim said.

"No, we are not going to do that. We are going to get independent legal advice and if the Presidency's lawyers are wrong they are just wrong," said Carrim. Endit