
$1.6 Billion Accounting Error Rocks South Carolina Treasury, Impeachment Proceedings Begin
RICHLAND COUNTY, S.C. (CC News Network) — Representative Heather Bauer will held a press conference Thursday to announce the filing of articles of impeachment against State Treasurer Curtis Loftis. The event was scheduled for 10 a.m. in the South Carolina State House lobby.
The announcement follows the release of a damning 65-page audit report by AlixPartners, a New York-based consulting firm, revealing that $1.6 billion of a previously reported $1.8 billion “cash balance” did not exist. The error, dating back to a transition in South Carolina’s accounting systems between 2015 and 2017, has shaken public confidence in the state’s financial oversight.
Audit Findings: A Decade-Old Oversight
- Discrepancy Details: The $1.8 billion accounting error consists of $1.6 billion in incorrect journal entries and $245 million in double-counted funds.
- System Transition Flaws: The issue arose during a conversion to a modern treasury tracking system. Officials believed discrepancies would “wash” out over time, which did not occur.
- Lack of Transparency: The error was discovered internally in 2018 but was not disclosed publicly until late 2024.
- Failed Oversight: The State Treasurer’s Office (STO) and Comptroller General’s Office (CGO) were aware of discrepancies yet failed to investigate thoroughly.
Bauer’s Push for Accountability
Bauer’s proposed articles of impeachment follow the report’s revelations. In a prepared statement, she said:
“Over almost a decade, the Treasurer knew or should have known of serious reporting errors. Instead of correcting these errors, the Treasurer and other state officials colluded to cook the books and mislead the public and the State Legislature.”

Bauer also criticized Loftis for his testimony before the Senate, stating that he was “combative and evasive,” blaming others and displaying unprofessional behavior during critical hearings. She urged him to resign, joining State Senator Larry Grooms (R-Berkeley) in calling for Loftis’s immediate removal if he does not step down voluntarily.
Political Fallout
Governor Henry McMaster defended Loftis, calling the error a “human mistake” exacerbated by outdated systems. “This was a complex situation, not a malicious act,” McMaster said. However, bipartisan calls for reform have emerged, with legislators demanding tighter financial controls, independent audits, and greater transparency.
Loftis has defended his tenure, stating, “Transparency has been my priority since day one. This error is a legacy issue we’ve worked tirelessly to resolve.” Despite his remarks, public frustration continues to grow.
Comparisons to the Murdaugh Trial
An ironic twist has emerged in the aftermath of the report. Creighton Waters, the lead prosecutor in the Alex Murdaugh trial, previously criticized the defense’s reliance on out-of-state experts, suggesting their testimony lacked credibility. However, South Carolina turned to the New York-based AlixPartners to investigate this financial crisis, prompting questions about the consistency of that stance.
Next Steps
- Legislative Hearings: Lawmakers have scheduled hearings to identify gaps in oversight and propose reforms.
- Policy Reforms: Proposals to strengthen transparency in the STO and CGO are expected to dominate the legislative session.
- Independent Audits: Recommendations include hiring third-party auditors to review state financial systems regularly.
This scandal underscores the challenges of managing large-scale system transitions and the critical importance of transparency, accountability, and oversight in public finance. The fallout will likely shape South Carolina’s financial management for years to come.
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