South Carolina treasurer faces impeachment over $1.8 billion accounting error
- A recent forensic audit revealed a $1.8 billion accounting error in South Carolina's finances, which has existed for over a decade.
- Lawmakers contend that Curtis Loftis failed to report the error and may have lied under oath during investigations.
- The impeachment proceedings against Loftis mark a significant moment in South Carolina history, as it would be the first successful impeachment of a statewide elected official.
In South Carolina, controversy has erupted surrounding the state's Treasurer, Curtis Loftis, who is facing potential impeachment due to a significant accounting error that has surfaced. The problem, initially traced back to a computer system conversion between 2012 and 2016, was highlighted in a forensic audit that revealed discrepancies in the state’s financial records. According to reports, the state’s accounting books have been inaccurate for over a decade, with Loftis allegedly ignoring key mistakes made by his office. A 58-page report disclosed last week indicated that the financial mismanagement included failed reporting to the General Assembly, which further exacerbated the issue. This led to a Senate subcommittee holding hearings and questioning Loftis under oath. The treasurer, who has held the position since 2010, has denied any wrongdoing, labeling the impeachment effort as a politically motivated attack. Loftis asserted that there is no missing or mismanaged money but rather a complex situation caused by previous accounting practices. The accounting errors emerged following the resignations of former Comptroller General Richard Eckstrom, which brought attention to the long-standing issue. Lawmakers allege Loftis has misled them regarding the management of $1.8 billion and have demanded either his resignation or an impeachment vote. They claim that Loftis’s actions reflect a significant lack of oversight, thus undermining South Carolina's fiscal reputation. As the investigation proceeds, Loftis has sought to defend his record, leaning on claims of having won multiple elections as a testament to his leadership. However, as South Carolina’s Republican-dominated Senate marches toward the impeachment process, the future of Loftis’s tenure hangs precariously in the balance. The outcome could reshape the role of the Treasurer, potentially changing it from an elected to an appointed position, affecting how public funds are controlled in the state.