South Carolina treasurer to face senators in removal hearing

COLUMBIA, S.C. (WCBD) — State Treasurer Curtis Loftis has resisted pressure to resign from office over his role in a $1.8 billion accounting error, setting the stage for a hearing Monday that could lead to his removal.

A Senate panel called for Loftis’s removal after a private forensic audit determined much of the “mystery” money never existed. It found that $1.6 billion was the result of accounting errors during a bank conversion process, and the remaining $200 million was cash that belonged to the General Fund.

The error came to light after Comptroller General Richard Eckstrom resigned in March 2023 over a different accounting mistake, and his replacement reported the mystery account.

The audit claimed the former Comptroller General, State Auditor, and Treasurer knew about the accounting error before it was reported to the General Assembly. State Auditor George Kennedy promptly resigned, but Loftis refused.

In a lengthy report released last month, senators accused Loftis of attempting to conceal his office’s involvement in the error during the year-long investigation. They said he “willfully neglected” his duties, and allowing him to continue as treasurer would put the state’s financial future at risk.

Loftis has fiercely denied any wrongdoing, blasting the effort to oust him as “politically motivated grandstanding.” He launched a bid for a fifth term in early April despite previously saying he would not seek reelection.

“I thought this was all going to blow over, and I was ready to retire. I had this office in perfect shape,” Loftis said April 3. “This office is under fire. They want to control this office. The Senate cannot control this office. This is a constitutionally elected office. We’re in the Executive Branch. I’m not giving this office up to the Legislative Branch. It’s an executive branch. I’m going to stay and fight.”

A final attempt by Loftis to stop Monday’s removal hearing was dismissed by the South Carolina Supreme Court last week, meaning it will continue as planned.

Here’s what to expect:

The hearing is scheduled to begin at noon and will likely last several hours.

Senators Larry Grooms (R-Berkeley) and Stephen Goldfinch (R-Georgetown) will be given an hour and thirty minutes to present their case as to why Loftis should be removed from office.

Loftis — and a team if he chooses — will then have up to three hours to offer a defense.

Grooms and Goldfinch will get the opportunity for a 30-minute rebuttal before the floor is opened up to all senators for questions.

If two-thirds of the Senate vote to remove him, the House will then decide whether to proceed with its own hearing. If both chambers vote to remove him, he will immediately cease being the state treasurer.

It would be a historic move as no constitutional officer has been removed in the state’s more than 200-year history.