News Summary
The South Carolina Senate has voted 33-8 to remove Treasurer Curtis Loftis from office following a significant $1.8 billion accounting error. The resolution now moves to the House of Representatives for further proceedings. Senators emphasized Loftis’s failure to adequately report financial discrepancies and voiced frustration over his lack of accountability. Loftis defended himself, arguing that the issues stemmed from complex accounting changes rather than intent to misappropriate funds. This historic action marks the first removal of a statewide elected official in South Carolina under such circumstances.
South Carolina – The South Carolina Senate has voted decisively to remove Treasurer Curtis Loftis from office, passing a resolution with a 33-8 vote. This significant decision follows an extensive eight-hour hearing that revolved around a critical accounting error amounting to $1.8 billion.
The resolution now heads to the South Carolina House of Representatives, where a two-thirds majority will be required for Loftis’s removal to take effect. The Senate vote, needing only 31 in favor, highlights the urgency with which lawmakers are seeking accountability for the state’s financial oversight.
Leading the charge for Loftis’s ouster were Senators Larry Grooms and Stephen Goldfinch, who argued that Loftis had failed in his duties by not promptly reporting discrepancies in state funds. They also accused him of threatening to disclose sensitive financial information out of spite, exacerbating tensions within the state government.
In his defense, Loftis and his team of attorneys contended that there was no substantial evidence warranting his removal from office. They claimed that he had been denied due process during the Senate proceedings and insisted that the accounting errors were a byproduct of complex accounting procedures stemming from a transitional period to a new accounting system, rather than any intent to misappropriate funds.
The outdated accounting issues have plagued South Carolina for over a decade, accumulating into the staggering figure of $1.8 billion. The state’s financial review involved forensic accountants, who discovered that a majority of this amount was actually fictitious. State financial officials, including former Comptroller General Richard Eckstrom and former State Auditor George Kennedy, have already resigned due to their involvement in the fallout from these errors.
Throughout the hearing, senators voiced considerable frustration over Loftis’s perceived lack of accountability. Many lawmakers pressed him to accept responsibility for the significant oversight. Loftis maintained that it was not solely his responsibility to communicate the financial discrepancies, attributing some accountability to other officials within the state government.
The actions taken by the Senate are historic; it marks the first time a statewide elected official faces removal under such circumstances in South Carolina’s history. The South Carolina Supreme Court allowed the Senate’s hearing to move forward after dismissing Loftis’s request to halt proceedings, deciding that the matter was not yet appropriate for judicial review.
This unfolding situation has attracted the attention of federal investigators, including the U.S. Securities and Exchange Commission, amid ongoing concerns regarding the state’s financial integrity. The severity of these investigations underscores the potential implications for South Carolina’s financial management and governance.
Despite the swirling controversy surrounding his position, Loftis has expressed his intention to run for reelection in 2026, claiming substantial support from his constituents. Meanwhile, House Speaker Murrell Smith has indicated that there may not be adequate support within the House to facilitate Loftis’s removal, suggesting that the matter might be better left in the hands of voters during upcoming elections.
The outcome of further proceedings in the House will be crucial in determining the next steps regarding Loftis’s tenure as Treasurer and the overall management of South Carolina’s state finances.
Deeper Dive: News & Info About This Topic
- CPA Practice Advisor
- Washington Examiner
- AP News
- Wikipedia: South Carolina
- Encyclopedia Britannica: South Carolina
Author: HERE Greenwood
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