COLUMBIA, S.C. (WRDW/WAGT) – South Carolina lawmakers have stated that their investigation into the state’s $1.8 billion enigma and the repercussions stemming from it is ongoing.
This announcement follows last month’s release of an independent report that determined a nearly $2 billion surplus thought to reside in state accounts was actually due to an accounting mistake.
On Tuesday, the Senate subcommittee responsible for scrutinizing this $1.8 billion issue for over a year convened to gather insights from key figures involved.
Treasurer Curtis Loftis, according to his staff, was absent as he was out of state. Recently, Loftis has been critical of this group of senators, labelling their investigation a “witch hunt.”
“I consider it a witch hunt because I am trying to identify those responsible for mishandling the state’s finances to the extent that there is no confidence in the accuracy of reported figures,” stated Senator Larry Grooms. “I want those responsible to be held accountable.”
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Loftis’ chief of staff, Clarissa Adams, testified under oath on his behalf, addressing, and at times evading, senators’ questions for over two hours.
They inquired about the findings of the external audit released last month, as well as Loftis’ comments to their subcommittee from the previous year, including his claim that the $1.8 billion was valid and had generated approximately $200 million in interest, which lawmakers utilized.
External auditors have indicated that such claims are implausible since the majority of that sum never existed, and any small amount that did had already been expended, thus could not have accrued interest.
Senators also questioned Adams regarding a situation last year where Loftis threatened to disclose the state’s sensitive financial details, prompting intervention from the governor, the head of SLED, and the attorney general to prevent the release of that information.
The chair of the subcommittee has expressed hopes to hear from the treasurer himself shortly, marking his first appearance since the external audit and report were made public.
“We will continue to investigate and seek further clarification, as we want to ensure the residents of this state, the public, the General Assembly, and Wall Street investors can have confidence when we provide them with information,” remarked Grooms.
Another significant figure in this matter, Comptroller General Brian Gaines, provided a brief testimony on Tuesday evening but is expected to return on Thursday to deliver a more comprehensive account.
Since the issuance of that report last month, the governor and lawmakers have publicly acknowledged, for the first time, that South Carolina is currently under federal investigation due to these financial inconsistencies.
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