“Not a penny is missing” — Loftis testifies before subcommittee over $1.8 billion accounting error

COLUMBIA, SC (WOLO) — During a heated exchange that lasted over three hours on Thursday, SC Treasurer Curtis Loftis testified before members of the SC Finance Constitutional Subcommittee, stemming from a $1.8 billion accounting error.

The hearing became fiery early on, when Senator Larry Grooms asked Loftis’s attorney to not speak on Loftis’s behalf without being sworn in.

“The sergeant will remove the gentleman from the room if he insists on testifying and not being under oath,” says Senator Grooms.

Loftis answering questions after an independent audit report from a firm called Alix Partners showed that the 1.8 billion dollars never actually existed, but was the result of “incorrect journal entries.”

“There’s not a penny missing, not a penny has been misspent. Not one agency has an extra nickel, ” says Loftis.

“But you agree there are errors, multibillion dollar errors,” says Grooms.

According to Loftis, some of the misunderstanding at recent hearings comes from senators incorrectly interchanging the word “funds” with the word “accounts,” and says he believes the “complexity of this problem is not suited to this (a subcommittee hearing with senators instead of accountants) environment.”

“We don’t deal with the funds, we deal with the accounts. The balance is in the bank, and we know the $1.8 billion, that matches the exact amount of money we have in the bank,” says Loftis.

Grooms also asking Loftis if he did anything wrong.

“What kind of question is that? I’ve been in office 15 years, ask me something specifically,” says Loftis.

He maintains that once the accounting entries are reversed, the error will be corrected, saying, “It doesn’t change cash. It’s a problem in the comptroller general’s books, its not a problem in the bank.” Currently Brian Gaines serves as SC’s Comptroller General.

At one point, Loftis was asked what his biggest mistake has been. He responded by saying, “I trusted the comptroller general that was the biggest mistake I ever made in my life!”

Loftis also testifying that he did not know about the error until 2023.

“Didn’t you just tell this committee you didn’t know about that you didn’t know about that and now I’m reading you an email from 2016?” asks Senator Stephen Goldfinch.

“I assume you’ve read an email that exists I don’t know but it doesn’t have my name on it does it?” responded Loftis.

And yet another tense exchange between Loftis and Senator Margie Bright Matthews:

“I don’t like it that you’ve made it seem like we’re picking on you. It’s not personal,” she says. “I could care less about that,” says Loftis.  “You lied to this committee, and you came back and said someone else lied and you’ve pointed the finger,” says Bright Matthews.  “I’ve never said anyone lied, don’t put that word in my mouth, I don’t use it,” says Loftis. “I won’t put that word in your mouth but when you say someone else gave inaccurate information, you’re calling someone else a liar,” says Bright Matthews.

When one senator implied Loftis should resign as treasurer, he said he won’t, adding, “It’s my job, I swore an oath I’m gonna protect this money and I know what Senate finance would do with this money. Y’all have been chasing me for 15 years and I’m not gonna let it happen! I stop this stuff on a regular basis!”

The sub committee’s final findings will be issued during a future date, yet to be announced.