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Historic Move in South Carolina: Attempt to Remove State Treasurer
COLUMBIA, S.C. — In a significant political development, South Carolina’s legislature is poised to undertake a rare procedure to potentially remove a statewide elected official for the first time in more than 200 years. This unprecedented action targets Republican State Treasurer Curtis Loftis.
On Wednesday, the Republican-controlled Senate announced plans to hold a hearing regarding Loftis’s removal, stemming from a critical $1.8 billion accounting error and Loftis’s failure to report this discrepancy to the General Assembly. Loftis has characterized the effort to oust him as politically motivated.
The process for his removal requires a two-thirds majority vote from both the Senate and House. A hearing is scheduled for April 21, during which senators will present their arguments, followed by a three-hour response period for Loftis or his legal representative. Subsequently, the House will conduct a similar hearing.
A recent 58-page report released last week highlights that South Carolina’s financial records have been inaccurate for a decade, indicating a failure to address ongoing discrepancies. An investigation by forensic accountants revealed that the issue stemmed not from unspent funds but from multiple errors in how accounts were managed during system transitions.
In response to the situation, legislators expressed the need to avoid perpetuating incompetence in managing fiscal oversight. The report includes more than 600 pages of supporting documents outlining Loftis’s alleged failures in managing the state’s treasury.
Loftis has defended his actions, noting his electoral success since 2010 and describing the Senate’s inquiry as a maneuver to pave the way for changing the treasurer’s position from an elected role to an appointed one. He argues that the real threat to South Carolina’s financial stability arises from this politically driven attack rather than from the alleged financial mismanagement.
The issues at hand began during a transition to new computer systems in the 2010s, leading to a significant imbalance in the state’s books. Over the years, attempts were made to mask the errors through various adjustments that ultimately failed to provide a long-term solution.
The stark revelation of these financial discrepancies emerged after the resignation of Comptroller General Richard Eckstrom in March 2023, following the discovery of yet another accounting error. His successor subsequently uncovered the problematic accounts.
The investigation suggests that Loftis not only overlooked errors in his office but actively resisted independent audits that could clarify the situation. “The treasurer tried to cover them up. He covered it up for the better part of seven to eight years,” remarked Republican Senator Stephen Goldfinch.
The hearings conducted by a Senate subcommittee have reportedly been contentious, with Loftis expressing frustration and accusing lawmakers of conducting a politically motivated witch hunt. In one notable exchange, Loftis’s response to a query about his failure to file necessary reports raised alarms among senators, particularly concerning the potential dissemination of sensitive financial information. Following this incident, they sought intervention from the governor and state police to prevent the publication of the report containing sensitive data.
Senators have criticized Loftis’s behavior and temperament, asserting that it undermines collaboration essential for maintaining the state’s financial integrity. They also pointed to Loftis’s lack of oversight, which has reportedly led to unnecessary expenditures in response to the accounting issue.
The Senate voted to proceed with what is termed a “removal on address” hearing, with no dissent recorded. Should this move progress, it would set a significant precedent as lawmakers have never carried out such a constitutional process to its conclusion.
As for the House, its position remains less clear, with few Republicans openly advocating for Loftis’s removal. Meanwhile, Republican Governor Henry McMaster suggested that ousting Loftis might be an extreme step, although he lacks a formal role in the proceedings.
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abcnews.go.com