South Carolina finds P102 billion in mysterious bank account, doesn't know where it came from
In South Carolina, about $1.8 billion (P102 billion) was collected in a mysterious bank account over the past decade, leaving state and private accountants wondering where the money came from and what it's for.
The Associated Press reported that it’s the state’s latest trouble in its books and two agencies, typically led by elected officials whose task is to ensure government accounts stay balanced.
Last year, South Carolina’s Republican comptroller general Richard Eckstrom, or the state's top accountant, resigned after his agency started double-posting money in higher education accounts that led to a $3.5 billion (P198 billion) error on paper.
According to AP, the problem started in the 2010s as the state shifted computer systems.
The latest issue, however, seemingly involves actual cash and an elected Republican treasurer, Curtis Loftis, whose job is to write checks for the state.
Senators said investigative accountants found that every time the state books were “out of whack,” money was shifted from somewhere into an account that helped balance it out.
Whatever caused the bank account errors hasn’t been corrected yet. Any record showing where the $1.8 billion came from hasn’t been shared with state leaders yet.
Republican Gov. Henry McMaster said that though it doesn't inspire confidence, no money was lost.
Loftis has said he invested the money in the mystery account and made nearly $200 million (P11 billion) in interest for the state.
It, however, raised questions on why he didn't inform the General Assembly that money was sitting around, whether it was set aside for state agencies or might have been in a trust fund, according to AP.
Loftis said that wasn't the job of his office.
He previously said the comptroller general “is attempting to shift responsibility to clean up its mess to the Treasurer,” adding that a timeline to answer questions in just a few weeks was impossible.
He said his staff spent thousands of hours researching the account, and that the comptroller general's office refused to meet with them or share information. According to an audit, their offices don’t communicate well.
Loftis hasn't answered detailed questions from lawmakers, AP reported, and has stated on social media that he's being politically attacked and blame-shifted by Eckstrom's successor, Brian Gaines.
Loftis and Gaines were called into a Senate hearing next week.
Republican Sen. Larry Grooms, who's leading the investigation into the issue, said he thinks Loftis's office should've found the mistake. Instead, it was the comptroller general's office that reported it.
Grooms said Gaines had also answered every question that was asked of him.
The Senate has approved putting a constitutional amendment before voters to make the comptroller general an appointed position. The proposal now goes to the House.
Grooms said an amendment to appoint the treasurer might be next unless he can provide satisfactory answers.