Audit Raises Concerns About Richland County Penny-Tax Program

The South Carolina Department of Revenue is Investigating the Penny-Tax Program for corruption, fraud, and illegal activity.

Columbia , S.C. (WOLO) — A report from the South Carolina Department of Revenue is raising concerns about the Richland County Penny-Tax Program.

According to a letter from Department Director, Rick Reames, a review of the program revealed instances of corruption, fraud and several instances of illegal activity by individuals and companies associated with the program.

In a news conference Tuesday morning, Richland County officials said in April 2015 the Department of Revenue requested an audit of the program that is in place to help fund transportation improvements in the county. However, County Chairman Torrey Rush said they do not know what instigated the request.

“We’ve been working with DOR (Department of Revenue), we wanted to make sure this has been a process that has been open with DOR,” said Rush. “That we’ve been giving them all the information and cooperating with them as much as possible.”

In a letter from the Department of Revenue, the department cited three main concerns including instances of corruption, fraud and illegal activity such as how the county contracts for penny tax projects.

“I am confident that we the county have taken the proper steps as it relates to procuring this process, procuring the contractors and any other contractor,” said Rush.

Rush said the county is requesting more information from the Department of Revenue to fully understand the allegations so they can take corrective action.

“We want to know exactly what these issues are, we want to know exactly what DOR is talking about,” said Rush.

In a statement released by the Department of Revenue, Director Rick Reames said “The department is committed to taking appropriate steps to ensure transparency, accountability, and protection of public tax dollars.”

Meanwhile, county officials said penny-tax projects currently underway will continue.

Officials say the investigation remains on-going, SLED and the Department of Revenue are handling different parts of the investigation. The county said Tuesday they plan to hire a forensic auditor to assess the Penny-Tax program independently.