Over the last ten years, South Carolina has found approximately $1.8 billion in a bank account.
Officials are puzzled as to the origin of this substantial sum and its intended purpose.
South Carolina Found $1.8 Billion State Bank Account
Republican Gov. Henry McMaster reassured the public on Tuesday that there was no loss of funds. The bank account appears to be linked to long-standing accounting issues for the state, which stem from a transition to a new computer system in the late 2010s.
The South Carolina Senate has set up a panel to investigate the funds. At the forefront of the initiative is Republican state Sen. Larry Grooms, who compared the scenario to entering a bank where the president informs you that there is a substantial amount of money in the vault, but the ownership of the funds is uncertain.
"It's like going into your bank and the bank president tells you we have a lot of money in our vault but we just don't know who it belongs to," said Grooms.
Experts in accounting are currently working to unravel the complex situation, but it seems that whenever there were discrepancies in the state's financial records, funds were transferred from one account to another in order to maintain balance, as reported by lawmakers.
Treasurer Curtis Loftis, a Republican, has been evasive about addressing questions about the cash. He has only mentioned his success in generating approximately $200 million in interest for the state. He claims that the comptroller general, Brian Gaines, is to blame for the lack of information regarding where the money is intended to be allocated.
Earlier this month, Loftis made the argument that Gaines is trying to avoid taking responsibility for cleaning up its mess by blaming the Treasurer.
Both Loftis and Gaines have been called to testify before Grooms' panel. Grooms observed that Gaines has diligently answered all the questions lawmakers raised during the investigation, whereas Loftis has not been as responsive.
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South Carolina Intends Not to Use Mystery Fund
The governor has announced that the state will delay any spending of the $1.8 billion until it can confirm its intended use.
Investigative accountants are currently working to unravel the complex situation, but according to state Senate leaders, whenever the state's financial records are inaccurate, funds are transferred from one account to another to restore balance.
"Politics should not be a factor. t is important for accountants to remain impartial," Grooms stated on Tuesday, shortly after the Senate passed a bill to allow the comptroller general to be appointed rather than elected. The proposal has now been sent to the House.
Grooms hinted at the possibility of an amendment to appoint the treasurer unless he can provide satisfactory answers. The bank account errors have yet to be resolved, and state leaders have not been provided with any records indicating the source of the $1.8 billion.
"It fails to instill a sense of trust. Fortunately, no money was lost," stated Republican Governor Henry McMaster.
Curtis Loftis, the elected Republican Treasurer, has claimed that he invested the money in an undisclosed account and generated almost $200 million in interest for the state.
This has raised concerns about why he did not inform the General Assembly about the funds that were either allocated for state agencies or potentially part of a trust fund. Loftis stated that it was not within the scope of his office's responsibilities.
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