South Carolina (queen city news) –The mystery deepens $1.8 billion found to a bank account in South Carolina.
The state's comptroller (the state's top treasurer) and treasurer testified about the funding today at a hearing before the state Senate Finance Committee. Due to the seriousness of the hearing, both elected representatives had to take an oath.
Treasury Secretary Curtis Loftis and Brian Gaines have argued that the other Treasury secretary is responsible for knowing about the $1.8 billion account.
Treasurer Loftis said the General Assembly spent the $1.8 billion accruing more than $200 million in interest that was returned to the general fund.
He testified for more than five hours today with just one break.
However, one senator said the owner of the $1.8 billion is unknown and could be Federal Funds, Dot Funds or a trust fund.
The Finance Committee's main question is where did the original money come from, how do they know it's nearly $2 billion, and the main question is how the constant contradictions ultimately led to the state's AAA The question is, will it ruin your credit score?
“We don't know who the $1.852 billion that is in the account today belongs to,” said state Sen. Tom Young, who represents 24 state legislatures.th district.
Loftis, who oversees and invests state funds, said it's not his job to notify lawmakers about miscellaneous funds.
“I want to be part of the solution. I'm too old now to discuss anything. This 1.8 needs to go to the people it belongs to,” Loftis said. told committee members. “We did what we had to do.”
His office manages more than $50 billion in state funds.
The groom said the comment was laughable. “I thought nickel was a material, but $1.8 billion isn't?”
He went on to criticize the CG Office and the South Carolina Department of Administration.
“Do you think the state needs to hire a forensic accountant to figure out where this money is?” asked Senator Young.
“Well, I don't know if that's necessarily a forensic accountant, but someone who can forensically look at certain aspects of the system to determine whether or not these funds are actually committing fraud. We need someone educated in software to guide us through 'ownership,''' Loftis argued.
During Tuesday's hearing, members learned that Loftis had asked the Comptroller's Office to open the account in 2014.
But treasurers said they had no idea where the money came from and had been trying to determine it since at least 2016.
“$1.8 billion is a serious problem. It matters to the people of South Carolina, and you’ve been neglecting this problem since 2016, after SCEIS. You don’t know what to do with it. , he kept it in his account and didn't tell Beau that he was snooping about it. He just put smoke around it so no one could see it,” Grooms claimed.
“It doesn't matter how you characterize this…” Loftis argued. “That's clearly false.”
A heated exchange ensued until senators ended the hearing.
“The difference is that [that] That's against the law. The difference is that it seems like an intentional act to cover up something? ” asked state Sen. Stephen Goldfinch.
“No…I'm not going to stand here. Get charged with breaking the law,” Loftis responded.
One thing Loftis acknowledged to senators was that he was not running for re-election. It is important to note that he was re-elected in 2022 without a democratic challenger.
The Senate committee hearing began at 9 a.m. and lasted until 1 p.m., before reconvening at approximately 3:15 p.m. The meeting closed just after 5:30 p.m. Committee Chairman Senator Grooms adjourned the hearing by stating:
“Members. As you can see, we have a little more work to do. We've been hearing from the Treasurer since about 9:30 this morning. It's now 5:30. We've taken a short break. We've had a lot to say today, and members. , the information packet we have is completely factual and the evidence is irrefutable.
Watching and listening to this, it is clear that Mr. Loftis has lost control of the Treasury. He left $1.8 billion in errors and $30 billion in bank adjustments unresolved for seven years. His actions demonstrate that the General Assembly cannot rely on him to resolve problems that have arisen under his watch.
A cash shortfall in the General Fund at the end of 2023 is likely not permitted by law and would likely have a significant impact on the state's fiscal position. He suppressed reporting of the cash shortage to the Fiscal Responsibility Committee, the General Assembly and the public.
Mr. Loftis abdicated his responsibilities as State Treasurer because his actions resulted in a misrepresentation of the State's financial condition, thereby misleading Congress, the people of South Carolina, and those who rely on the State's financial statements. . He betrayed the public's trust. We will continue to investigate the $1.8 billion and two other issues raised here today. ”
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