In a statement the Al-Jama Ah political organisation claims "the SABC has put a ban on referring to the religion of militants when a terrorism attack is reported and ordered that the name of the alleged organization rather be cited."
"The SABC has apologised on behalf of its journalist who blamed Islam and 'generalised any religion when terrorism is involved'. The journalist was severely disciplined," says the statement from the group.
The SABC says there is no ban.
The statement from the political party follows SABC News coverage over which a complaint has been made with the Broadcasting Complaints Commission of South Africa (BCCSA). The case is ongoing and will be heard again by the BCCSA on 2 December.
At issue is news coverage of the SABC following the Westgate mall attacks in Nairobi, Kenya on 21 September.
Al-Jama-Ah political party leader Ganief Hendricks wants a ban on using the terms "Islamic militarism" and "military Islam" in media reporting when a terrorism attack occurs.
In response to a media enquiry the SABC's spokesperson Kaizer Kganyago says the broadcaster "has not agreed to ban anything".
"We went to the BCCSA and have given a committment for journalistic training around the issue and a deeper understanding of how to report stories. To say that the SABC has 'banned' terminology is exaggeration."
"To say that something is banned means that it was allowed and that it is now no longer allowed. The fact of the matter is the statement is an exaggeration which is not correct," says Kaizer Kganyago.
"We undertook that how the story the story was reported will not happen again and apologised. Words have not been banned. The SABC will again appear before the BCCSA and we will again put our position forward," said Kaizer Kganyago.
Talk show host Faizal Sayed with a talk show on Deen TV (TopTV 355 / OVHD), who is the vice president of the TV channel with an Islamic ethos, is weighing in, saying in a statement that "the terms 'Islamist' and similar terms are an ideology created by Western media."
"The matter is a delicate matter but one that must be clearly defined to ensure no further related problems in the future".
Faizal Sayed says "the media is there to ensure that the authenticity of a report is delivered to the public without it being tainted with the personal notions of the reporter, especially as South African media, who hail from a county which was ravaged in a bitter oppressive past, being labelled all kinds of terms without justification."
In October the Press Ombudsman turned down a request to ban the use of the words from South African newspaper reports, following a letter by the United Muslim Nations International (UMNI) organisation.