COLUMBIA, S.C. — A new task force responsible for investigating a puzzling 1.8 billion dollar account continued its quest for answers on Tuesday.
The Task Force is made up of the Treasurer's Office, the Comptroller General's Office, the State Auditor's Office, and the Department of Administration. They are tasked with finding out where the money came from and who it belongs to by July 1.
“We're going to get to the bottom of this. I'm doubtful it can be all figured out before July 1, but I am looking forward to what information that can be provided by the Taskforce,” said Senator Larry Grooms, who chairs the committee responsible for the scathing 116-page report released last week. “We have to restore the trust of the people of South Carolina, that their bank knows where their money is and is being spent for the intended purposes.”
Despite mounting pressure to remove Loftis from office, Governor Henry McMaster opted to establish a Task Force to trace the money's origins and ensure proper handling.
In addition to Tuesday’s meeting, the Task Force has convened at least twice before, with formation meetings on April 11th and April 16th. These sessions, however, remain closed to the public.
“There are some sensitive financial information that you would not want posted publicly. You don't want bad actors or cyber attacks on our state's finances,” said Grooms.
News 19 reached out to the Department of Administration, Treasurer's Office, and Comptroller General's Office for interviews, but they were unavailable.
Comptroller General Brian Gaines expressed optimism in the Task Force's ability to determine the source and appropriate allocation of the 1.8 billion dollars, saying in a statement to News 19 Quote:
"This is a complex matter, but we are optimistic that the task force created by Governor McMaster will seek to determine the source and proper placement of the $1.8 billion. We are thankful for the help and support provided by the Governor, State Auditor, the Department of Administration, the Attorney General's Office and the General Assembly. The CG remains willing to engage in this productive work effort to help the state resolve this important matter."
Meanwhile, the Senate has allocated $4.2 million in the state budget for a forensic audit. Grooms said that it could begin as early as July and take about a year to complete.
“Having an outside firm with auditing experts is key to solving this and an unbiased group coming in that has the credibility that has done multibillion dollar audits before is what is needed to find out where the money if the money actually exists, and where it rightfully belongs,” said Grooms.
It’s unclear when the task force will hold its next meeting.
South Carolina lawmakers have two potential avenues for removing the Treasurer from office. The first, through impeachment, requires a two-thirds majority vote in both the House and Senate for serious crimes or misconduct.
The second, known as "impeachment lite," necessitates action by both chambers and the Governor for willful neglect of duty.
