By Joseph Bustos
The State
(TNS)
Facing a vote in the state Senate to remove him from office, South Carolina Treasurer Curtis Loftis is asking the state Supreme Court to stop the planned hearing in the General Assembly’s upper chamber.
In a filing Thursday, Loftis’ attorneys asked for a stay on the Senate’s April 21 hearing until the court could decide whether the General Assembly can use a clause in the state constitution to remove him for willful neglect of duty. His attorneys argue the process of removal needs to begin in the House like in a traditional impeachment process, rather than in the Senate.
“This injunction is about ensuring fairness, transparency, and adherence to the rule of law,” Loftis said. “I am asking the Supreme Court to step in and clarify whether the Senate is authorized to overturn a state election using this provision. The people of South Carolina deserve a process that upholds the law and the democratic principles they have entrusted to us.”
- Related article: After $1.8B Accounting Error, South Carolina Looks to Change External Auditor
- Related article: South Carolina Treasurer Accused of Violating Federal, State Law in Scathing Report on $1.8B Accounting Error
- Related article: After $1.8B Accounting Error, Senate Report Likely to Suggest Removal of South Carolina’s Treasurer
- Related article: South Carolina Treasurer Vows to Stay in Office, After Auditor Resigns Amid $1.8 Billion Accounting Error
The request to state’s top court is the latest move by Loftis to stave off a possible removal from office.
As part of his defense in front of the Senate, Loftis is telegraphing that he believes Senate Finance Committee members have long planned to try to oust him, according to documents obtained by The State newspaper.
In documents sent to the S.C. Senate, the treasurer’s legal team questioned the process the Senate is using against Loftis, wanted details on how senators came to their conclusions and sought a list of staff members who helped with making presentations during the investigation, the documents show.
The Loftis team’s request for information mirrors discovery requests generally taken during a judicial process. They also wanted state Sens. Larry Grooms and Stephen Goldfinch, who will present the case for removal, to concede they are acting as prosecutors.
But the process in the Senate chamber is a legislative move allowed under the state constitution with different procedures than a courtroom. The removal hearing comes after the Senate Finance panel issued two reports over the accounting error.
Following the Senate Finance investigation into a $1.8 billion accounting error, the panel of Senate budget writers recommended removing Loftis from office for willful neglect of duty as the treasurer has ignored calls to resign. It’s a move allowed under the state constitution for actions that fall short of impeachment.
Loftis has retained Columbia attorney Deborah Barbier and Charleston attorney Dawes Cooke to represent him during the hearing planned for April 21. They will work alongside Shawn Eubanks, an attorney in the treasurer’s office.
The S.C. Attorney General’s office has yet to formally approve the treasurer’s office use of outside lawyers, but said if the removal is unsuccessful, Loftis will be reimbursed for up to $400 an hour.
Removal from office for willful neglect of duty requires a two-thirds vote of each chamber. If enough senators on April 21 vote to remove, the resolution will then move to the House.
What Loftis wants
The Loftis’ team asked for senators to essentially show their work by asking how the subcommittee was authorized to carry out its investigation and how it approved its reports. His team wanted a description of the events around Loftis’ reported threat to release sensitive financial information, names of people who prepared documents in the subcommittee reports and people who edited videos shown during hearings.
Loftis’ lawyers also asked for communications from the comptroller-general’s office, a list of people considered to replace Comptroller General Richard Eckstrom and whether names have been discussed since January 2023 to replace Loftis if he’s removed.
The treasurer’s team also wants the reason of why the treasurer’s report on the $1.8 billion was not included in the final subcommittee report.
Loftis also called on Grooms and Goldfinch to admit no money was missing nor fraud committed by the treasurer’s office, the treasurer’s books properly reconciled with the state’s bank accounts, and that the treasurer prior to 2023 didn’t know of the accounting issue.
In a letter sent Wednesday, Barbier wrote that Loftis continues to object to the use of the willful neglect clause in the state constitution. Rather the decision of whether Loftis should keep his job, she argued, should be left to the voters in next year’s election as the treasurer runs for reelection.
Barbier also wrote to Senate President Thomas Alexander that the time for Loftis’ lawyers to prepare was too short and asked the hearing be moved back to May 20.
“It remains unclear to me why the Senate has established this hurried, 19-day timeline for this hearing, given that removing the Treasurer from office would disenfranchise 80% of South Carolina voters who elected him to the position,” Barbier wrote. “Under the circumstances, I believe it would be far more appropriate to leave this decision to the South Carolina electorate in November of 2026.”
Loftis, a Republican, won reelection in 2022 with 79.67% of the vote. A third-party candidate was the only challenger Loftis faced in the 2022 general election. He had no primary election opposition.
An outside independent forensic audit found the treasurer’s office along with the comptroller-general and state auditor’s office, as well as an independent outside auditing firm knew about the $1.8 billion accounting issue but did not alert the General Assembly. That same forensic audit found the state’s yearslong accounting issues has found most of the $1.8 billion did not exist, but also no money was missing.
Former Comptroller General Richard Eckstrom resigned in 2023 after he disclosed he inflated the state’s cash balances by $3.5 billion over 10 years. State Auditor George Kennedy resigned after the independent forensic auditor issued its report into the state’s accounting issues.
Senate staff has met with Loftis’ lawyers about their requests but has yet to formally respond to Barbier’s Wednesday letter.
Photo caption: South Carolina Treasurer Curtis Loftis and treasurer’s office attorney Shawn Eubanks prepare to answer questions from a Senate Finance Committee panel on Thursday, Feb. 27, 2025. (Joseph Bustos/The State/TNS)
.
_______
©2025 The State. Visit thestate.com. Distributed by Tribune Content Agency LLC.
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
