By Joseph Bustos
The State
(TNS)
South Carolina Treasurer Curtis Loftis’ office is now under investigation by the state’s inspector general.
This follows a House decision not to take up a Senate resolution to remove the treasurer this year over a $1.8 billion accounting error. The House is researching how to best move forward with the resolution after this year’s legislative work.
The Senate last month voted 33-8 to remove Loftis for willful neglect of duty.
- Related article: South Carolina Senate Votes to Oust State Treasurer Curtis Loftis Over $1.8B Accounting Error
- Related article: South Carolina Treasurer Asks State Supreme Court to Stop Senate Hearing Over $1.8B Accounting Error
- Related article: After $1.8B Accounting Error, South Carolina Looks to Change External Auditor
- Related article: South Carolina Treasurer Accused of Violating Federal, State Law in Scathing Report on $1.8B Accounting Error
- Related article: After $1.8B Accounting Error, Senate Report Likely to Suggest Removal of South Carolina’s Treasurer
- Related article: South Carolina Treasurer Vows to Stay in Office, After Auditor Resigns Amid $1.8 Billion Accounting Error
Inspector General Brian Lamkin told The State the investigation will not replicate either the Senate investigation or the Alix Partners report into South Carolina’s accounting issues, the latter of which found most of the $1.8 billion did not exist. The inspector general, whose investigation began Thursday, instead will focus on the operations of the treasurer’s office.
According to a letter sent by Lamkin to Loftis obtained by The State, the inspector general will review:
- A review of potential waste of state resources by the treasurer’s office in “carrying out public information campaigns, utilizing crisis communication services, and engaging outside experts.”
- A review of the treasurer’s office use of “other funds” rather than general funds appropriated by the General Assembly.
- A review of the statutory requirements for treasurer’s office reporting disclosures to the General Assembly and the public; and,
- A review the reconciliation process of accounts, funds and investments under the custody and control of the treasurer’s office.
After the inspector general formally notified the treasurer of the investigation, Loftis took to social media to express frustration over the latest inquiry.
“The Witch-Hunt Rolls On,” Loftis posted on Facebook. “They’ve ridiculed me, they’ve ridiculed you, ignored my constitutional and statutory rights, and dragged the Treasurer’s Office through endless investigations—all to score political points.”
In a statement issued Friday by his office, Loftis said he welcomed the the review.
“Following the March 27th Senate Finance Constitutional Subcommittee hearing, I proactively met with Inspector General Brian Lamkin and State Law Enforcement Division Chief Mark Keel and expressed a willingness to have them thoroughly investigate the State Treasurer’s Office regarding the reported $1.8 billion accounting discrepancy,” Loftis said. “Since taking office in 2010, I have consistently upheld the principles of accountability and transparency on behalf of the citizens of South Carolina.”
Grooms, in a letter to Lamkin formally asking for the investigation, asked the inspector general to investigate evidence of fraud, waste, abuse, mismanagement, misconduct or violations of law.
“In our report, we have cited concerns regarding the potential waste of state resources in carrying out public information campaigns, utilizing crisis communication services, and engaging outside experts to respond to or refute findings of third-party experts engaged by the state to determine the balance of our State Treasury funds,” Grooms wrote. “As a related matter, because the agency operates largely using ‘other funds’ rather than general funds appropriated by the General Assembly, there is little budget transparency or accountability.”
In an interview, Grooms said, “I’m glad our subcommittee work can be used by others to fix the financial discrepancies that continue to plague our treasury books.”
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©2025 The State. Visit thestate.com. Distributed by Tribune Content Agency LLC.
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