Zuma eloquent in damning graft but slow in curbing it

Echoing a theme effectively articulated many times on the world stage by Thabo Mbeki, President Jacob Zuma has told the UN General Assembly that Africa's development is being thwarted by illicit financial outflows of up to $50-billion a year.

''We urge the world at large to treat this problem with the seriousness and urgency it deserves," the president said.

Zuma is spot on: leaders could do much more to curb the vast flows of money being siphoned out of emerging market economies by tax dodgers and other criminals who are callously depriving the poor of education and healthcare.

Which is what makes it especially puzzling that a law intended to achieve precisely that has been sitting on our president's desk for many months.

The Financial Intelligence Centre Amendment Bill, which proposes beefing up the country's capacity to combat corruption, notably money-laundering and the financing of terrorism, would align South Africa with international best practice. It was approved by parliament in May.

Zuma's signing of the bill into law would compel banks to place the transactions of ''politically exposed'' individuals under especial scrutiny. Its enactment has been delayed by an objection, from a business lobby group led by former government spokesman Mzwanele Manyi, that it might not be constitutional.

Zuma is correct in saying that he must consider Manyi's petition. But then he surely should enact the bill - and put South Africa on the same footing as other countries that are serious about fighting graft.

Any objections by state officials whose financial conduct has been flagged by the banks that their right to privacy has been violated can be heard by the courts.

Corruption is endemic and the government must do the right thing, especially in light of the campaign against the banks, and the independence of the Reserve Bank, led by Mineral Resources Minister Mosebenzi Zwane.