Columbia, SC (WSPA) - Recently, one of the most significant stories coming out of South Carolina involved “mystery” $1.8 billion allegedly discovered in a governmental ledger.
However, a financial accounting report revealed that the alleged $1.8 billion was actually due to a bookkeeping mistake.
After the report, both the former Comptroller General and State Auditor resigned However, Treasurer Curtis Loftis continues to remain in his position.
Treasury Secretary Loftis has provided testimony multiple times under oath since the release of the report, stressing that he did not make the error.
Recently, a Senate subcommittee headed by Senator Larry Grooms (R – Berkeley) released a report. report , discovering that the state’s financial situation was in disarray under Treasurer Loftis’s guidance.
On Wednesday, the Senate agreed to hold a hearing requested for April 21, during which Loftis and his legal team will address the Senate with the aim of possibly removing him from office.
Initially, however, the House must determine whether to hold an independent hearing. Should both legislative bodies convene hearings and subsequently have at least two-thirds of members from each chamber vote for removal, Loftis would then face expulsion. He mentioned his intention to utilize his present legal team along with external personnel; nonetheless, he voiced apprehension regarding tackling these intricate matters within merely three hours.
Loftis, who has been serving his fourth term as state treasurer since winning the election in 2010, launched his re-election campaign on Wednesday.
During his campaign launch, Loftis charged the subcommittee with conducting a "smear campaign involving defamation."
Previously, Loftis mentioned that his plan was to retire and not run for office again.
Should Loftis get removed, he could still contest reelection in 2026. This scenario would mark the first instance in two hundred years where South Carolina has ousted a statewide elected official from their position.
The 7NEWS channel conducted an interview with Treasurer Loftis to talk about the report, the unclear $1.8 billion, and his upcoming re-election campaign.
Loftis mentioned that being called to step down from his position doesn't make him feel good.
“There isn’t a single cent missing,” Loftis stated. “Individuals do not end up in prison due to bookkeeping discrepancies. People aren’t removed from their positions because of an accounting issue.”
Loftis recognized the significance of accurate accounting tasks for South Carolina but emphasized that context should also be taken into account.
A 58-page The report issued last week regarding the accounting mistake indicated that South Carolina’s financial records have been incorrect for a decade and still haven’t been rectified. The state allocated $7 million to investigative accountants who ultimately found out that the unaccounted funds weren't actually missed expenditures, but rather stemmed from mistakes in bookkeeping and transferring balances between systems without proper reconciliation.
The state should "avoid leaving the continuous financial monitoring—the banking and investment responsibilities of our state—incompetent hands," according to senators who authored a report stating this sentiment along with numerous other points. Essentially, they argued that if the treasurer fails at managing the treasury, he shouldn’t stay in office, as stated within their detailed document. 600 pages of exhibits.
When questioned regarding the substantial sums paid to forensic accountants to trace the source of the state’s financial mistake, Loftis stated that this expenditure is adversely affecting the taxpayers.
It’s located within Columbia. People sitting elsewhere remain unaware of everything until 99 percent of them realize there’s no missing money, at which point they lose interest," Loftis noted. "The harm being done to the state happens right here in this town, driven by their desire for this position, but I won’t let that happen.
Therefore, why did Loftis announce his intention to run for re-election on Wednesday? According to him, the timing coincided with the release of the Senate subcommittee’s report, which he deemed as an opportune moment to launch his campaign.
I expected everything would calm down, and I was planning to step back from my role," Loftis stated. "My office has been meticulously maintained. However, now this office is facing intense scrutiny. There are attempts to exert control over it. But the Senate does not have jurisdiction over this office. As a position elected according to our Constitution, we operate within the Executive Branch. I will not hand over responsibilities meant for the Executive Branch to the Legislative Branch. My place is here as part of the executive team, so I intend to remain and defend my stance.
The Associated Press provided contributions to this report.
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