If there’s one thing that’s bringing together Republicans and Democrats in Columbia, it’s the increasingly widely-held belief that it’s time for state Treasurer Curtis Loftis to step down.
The problem is that Loftis, one of three statewide officials ensnared in a multibillion dollar accounting errors and scandal that forced out the other two, doesn’t realize the clock is buzzing. He is, in fact, defiant, as he related in several direct questions from Statehouse Report.
Will you resign?
“Absolutely not. The citizens of South Carolina have elected me four times to be their treasurer, and I am grateful for their continued support. My record of standing up to special interests and political insiders is well known, and the public is aware of the many instances of retaliation I have had to endure for protecting their money.”
Why not, since you’re under enormous pressure to move on?
“A small group of politically motivated legislators and their special interest friends does not constitute ‘enormous pressure.’ On the contrary, I have support of most of the legislature, the House leadership and the governor. Most importantly, the citizens of South Carolina have continued to support me as they have for the last 15 years.”
But how can you lead responsibly in an environment where your reputation has incurred a lot of damage and lots of people have lost faith in you?
“Most South Carolinians know this is simply dirty politics. An accounting entry does not worry the hard-working people of this state, as they understand that there was no mysterious bank account, no missing money and no misspent money. They know the state’s cash and investments are properly accounted for, and they repeatedly tell me to keep up the good work and continue to fight for them.”
Loftis maintains the whole mess is grandstanding, particularly by state senators who want “their puppets… to control the accounting of funds and how they are banked and invested. In a democracy, there is supposed to be a system of checks and balances, and I believe that the voting public will not allow these politicians to hijack their money.”
But just this week in another Senate hearing looking into the huge error, the forensic auditing firm that investigated what happened challenged statements made earlier this year by Loftis. One senator described what was going as a cover-up. Loftis said it was a witch hunt and he testified honestly.
So what now happens?
The pressure will remain, but the Senate can’t throw out Loftis. If lawmakers want to get rid of him – and one Democratic insider said he hadn’t heard of any Republicans in the Senate supporting Loftis – then an impeachment effort would have to start in the S.C. House. And that’s controlled by House Speaker Murrell Smith, who with Gov. Henry McMaster reportedly supports Loftis, just so the Republican Party doesn’t get dinged with another hit to its reputation.
So Loftis remains in office. And regardless of whether you take his side or the Senate’s, the country’s major credit rating agencies, which assess creditworthiness of state governments and influence borrowing power and rates, are looking coolly at South Carolina these days. If they do anything to impede the state’s ability to operate or borrow, that will force higher rates, which isn’t good for state taxpayers.
So it’s time for Loftis to go and make way for less drama and more stability.
But what’s the likelihood of that? Who knows. But get this: Loftis may run for reelection, just to prove that people are behind him.
While he says he wants to get back to business as usual, he noted, “I continue to enjoy widespread public support as I have for the last four elections and money is not an object, so I have options. I have spoken to party and community leaders, and they have been uniformly positive about a possible reelection campaign.”
Andy Brack is editor and publisher of Statehouse Report and the Charleston City Paper. Have a comment? Send to: feedback@statehousereport.com.
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(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)
