South Carolina Treasurer Curtis Loftis has taken his fight to the Supreme Court, challenging a Senate hearing that could remove him from office over a $1.8 billion accounting discrepancy that has haunted state finances for nearly a decade.
At a Glance
- South Carolina’s Treasurer faces potential removal from office due to a $1.8 billion accounting error that has persisted for nearly ten years
- Loftis is challenging the Senate’s removal hearing process at the state Supreme Court, arguing it should follow impeachment procedures
- The accounting discrepancy was determined to be an accounting error rather than actual missing funds
- Senate investigation has been ongoing for over a year, with Loftis labeling it a “witch hunt”
- The state is under federal investigation due to these financial discrepancies
Constitutional Challenge to Removal Process
South Carolina Treasurer Curtis Loftis has petitioned the state’s highest court to intervene in what could be an unprecedented removal from office. The South Carolina Senate scheduled an April 21 hearing to address allegations of neglect of duty related to the $1.8 billion accounting discrepancy. Loftis contends that his removal should follow a different constitutional path, beginning with impeachment proceedings in the House rather than the Senate’s current approach.
No statewide office holder in South Carolina has ever been removed through this process, adding constitutional significance to the case. Loftis’ legal team argues that with the General Assembly’s session ending May 8, the abbreviated timeline creates procedural unfairness and insufficient preparation time. The Supreme Court’s decision could establish important precedent for how South Carolina handles misconduct allegations against elected officials.
The $1.8 Billion Question
The accounting error at the center of this controversy has persisted for nearly ten years, stemming from a shift in accounting systems rather than actual missing funds. What initially appeared as a potential surplus was revealed to be a significant accounting mistake. Loftis previously claimed the $1.8 billion was real money that generated $200 million in interest, a statement now being scrutinized by investigators. Outside auditors have determined that most of the money never existed, and the small amount that did was already allocated and spent.
“I believe it is a witch hunt because I want to find the witch that’s responsible for messing with the state’s finances in such a way that no one can have confidence and trust that the numbers being reported are accurate,” said Senator Larry Grooms.
A Senate subcommittee has been investigating the matter for over a year, with Loftis himself characterizing the probe as a “witch hunt.” The issue gained additional attention after a separate accounting mistake led to the resignation of Comptroller General Richard Eckstrom. The treasury issue is more complex, with a 49-page report highlighting ongoing inaccuracies in state financial records and allegations that Loftis obstructed investigation efforts.
Senate Investigation Continues
At a recent Senate subcommittee meeting, Loftis was notably absent, with his Chief of Staff Clarissa Adams testifying in his place. Senators questioned Adams about Loftis’ previous threat to release sensitive financial information, signaling their determination to hear directly from the Treasurer in future sessions. Comptroller General Brian Gaines also provided brief testimony and is expected to return for more detailed questioning as the investigation proceeds.
If the Senate’s process moves forward and two-thirds vote for removal, the case would then proceed to the House, requiring another two-thirds vote to finalize removal. Loftis’ attorney, Deborah Barbier, has suggested that voters should decide Loftis’ fate in the 2026 election rather than through this contested removal process. Meanwhile, federal investigators are examining the state’s financial discrepancies, adding another layer of scrutiny to South Carolina’s fiscal management practices.
