Parliament's legal advisors found the provision in the Electoral Matters Amendment Bill - which would give the president the power to determine the threshold at which political parties have to declare their donations and the limits of the amounts they are allowed to accept - could be unconstitutional.
Home Affairs Minister Aaron Motsoaledi, however, defended this provision, one which could lead to less transparency in private political funding, and which has drawn much criticism from civil society.
The main purpose of the Electoral Matters Amendment Bill, which was introduced in December, is to amend the Political Party Funding Act (PPFA) and other legislation to bring it in line with the Electoral Amendment Act, which allows independent candidates to contest provincial and national elections.