COLUMBIA, S.C. — Governor Henry McMaster has weighed in on the ongoing controversy surrounding a mysterious $1.8 billion state fund.
The origins and intended recipients of this substantial sum remain unknown, prompting the establishment of a new task force dedicated to unraveling this financial puzzle.
The task force is made up of key state offices including the Treasurer's, Comptroller General's, State Auditor's, and Department of Administration. They must report their findings by July 1.
“As long as we all work together– communicate, collaborate, and cooperate and work for the people and quit fighting among ourselves I think we’ll be just fine,” said McMaster.
The Senate Finance Subcommittee released a report this week, criticizing State Treasurer Curtis Loftis for what it deems a lack of effective oversight regarding the fund. The report also alleges that Loftis nearly disclosed sensitive financial information online, until McMaster intervened. However, Loftis denies that claim.
While Governor McMaster refrained from directly condemning Loftis's actions, a scathing Senate report alleges Loftis's involvement in pressuring the State Auditor and making investment decisions that led to losses, accusations Loftis vehemently denies.
“The main thing is not to at this point not to point blame or try to find error but find out the answers about the money. Where is it, where is supposed to go, and if it's really there,” said McMaster. “If it is there then I would recommend that we don’t spend it – let's hold onto it. But if it is there let's find out all the details and present those to the taxpayers, it's their money. And try to Restore some confidence.”
Senator Larry Grooms, chair of the committee behind the report, expressed skepticism about Loftis's willingness to cooperate fully with forensic auditors.
“Why on earth would he threaten the state’s finances? Either he was off his rocker or he was sending a message that if you try to remove me, I’m going to destroy the state’s financial system,” said Grooms.
Governor McMaster also addressed the report's suggestion of making the Treasurer an appointed position.
“I’m satisfied with it being an elected position but it's not a strong point with me but I think the people have a right to choose an important position like that,” said McMaster.
Many senators have said that Loftis should be removed from office.
“If this was the treasurer in your local church and it was $18 — as opposed to $1.8 billion — they would have been gone a long time ago,” said Sen. Margie Bright-Matthews (D-Colleton).
It’s unclear when the Governor’s task force will meet again.