An extraordinary hearing unfolded as the Republican-led Senate of South Carolina confronted the state’s Republican treasurer in a significant session aimed at addressing a substantial $1.8 billion accounting error. This hearing marked the peak of a prolonged two-year investigation initiated by the Senate following the revelation that state accountants had inadvertently inflated funds allocated to colleges and universities by $3.5 billion. This oversight led to uncovering an error originating a decade ago, during a transition from one accounting system to another. Over time, unresolved discrepancies between the two accounting systems were continuously added to a special account, amassing to the staggering amount of $1.8 billion.
Forensic accountants, who were compensated with millions in fees, eventually determined that the supposed funds were largely a collection of errors rather than actual cash. The hearing saw two Republican senators advocating for the removal of Treasurer Curtis Loftis, citing concerns over his competence and accusing him of failing to report the mistakes to lawmakers and refusing to accept responsibility.
During the proceedings, senators directly questioned Loftis about his lack of accountability for the error and his decision to let others inform the Senate. In response, Loftis claimed that other officials bore that responsibility, leading to a tense exchange with Republican Senator Luke Rankin, who urged him to accept responsibility.
Loftis, in his defense, dismissed the Senate’s investigation as a witch hunt, maintaining that no funds were missing and that the errors did not originate from his office, despite contrary testimonies. He warned that fixating on these mistakes could jeopardize the state’s strong credit rating. His defense team presented a photograph of Loftis with President Donald Trump and likened the hearing to political coups in Zimbabwe and Myanmar, arguing that Loftis should ultimately be judged by voters in the upcoming Republican primary.
Attorney Johnny Gasser reminded the Republican-majority Senate that nearly every vote cast for them was also a vote for Loftis, questioning if they wanted to pursue this path. To remove Loftis, the Senate requires a two-thirds majority vote to charge him with “willful neglect of duty,” followed by a similar vote in the House. Historically, no officeholder in South Carolina has been removed in this manner since the state’s inception 235 years ago, and the House leadership has not indicated whether it will pursue the matter.
Senator Larry Grooms highlighted ongoing challenges with the state’s accounting systems and criticized Loftis for allegedly costing taxpayers millions in legal and auditing fees. Loftis, acknowledging his shortcomings, expressed a commitment to improving his performance and emphasized his passion for addressing perceived injustices. He concluded by urging collaboration among the senators to focus on serving South Carolinians with honor and respect.
