This website has written extensively on corruption at the South Carolina Retirement System Investment Commission (SCRSIC), the agency responsible for managing billions of dollars in state assets. We’ve also written extensively on Robert L. Borden – the Lamborghini-driving chief executive of this agency who makes nearly $500,000 a year, not counting benefits.
Last fall, FITS broke the story of a controversial pension fund takeover engineered by Borden. After the mainstream media picked up on the scam, the rats started scurrying from the ship.
Borden’s original plan was for state government to create a new investment corporation that would manage up to $9 billion in retirement assets – including investments in South Carolina companies. The new company – dubbed “NewCo” – would have employed 50 people and operated on an annual budget of $29 million, which ostensibly would have been paid for out of “savings” in investment fees. “NewCo” would have managed up to $6 billion in retirement assets almost immediately – while eventually managing up to $8.7 billion of the state’s $25 billion pension fund.
Under the proposed plan, executive salaries would have risen to private sector heights. But unlike the private markets, these employees would not have their own money invested in the scheme …
Needless to say, the creation of this new entity was fraught with all sorts of ethical problems – most notably a complete lack of transparency and accountability at any step of the process. Basically, public employees’ savings would have been spent/ invested under the plan without their input … and with no oversight from either the legislative or executive branches of government.
That’s why the S.C. Budget and Control Board under S.C. Gov. Mark Sanford rejected the scheme.
While Borden’s initial effort failed … he has successful begun the process of taking this idea “in-house.”
Borden’s commission – which had a $5.8 million budget a year ago – convinced S.C. Gov. Nikki Haley and our “Republican-controlled” S.C. General Assembly to appropriate another $5.5 million in the current budget. And yes … he got a massive raise in the process, and attempted to give himself a one-day bonus of $66,000 before being blocked by S.C. Treasurer Curtis Loftis.
Borden will reportedly seek a total of $19 million in the upcoming spending plan – with all of the money coming out of the mysterious “other funds” section of the state budget.
In an effort to uncover the truth about all of these scams, FITS sent a Freedom of Information Act (FOIA) request to the commission earlier this year. Unfortunately, the agency took more than eight months to provide us with public documents that were responsive to our request – and many of the documents we requested appear to have been omitted.
Amazingly, the agency pulled the same evasive action in responding to information requests from Loftis – who according to The Spartanburg Herald-Journal was forced to issue a FOIA to obtain Borden’s work schedule and travel calendar.
What is Borden hiding?
Seriously, taxpayers are shelling out half a million dollars on his salary – prior to benefits and bonuses – and literally doubled the budget of his agency this year.
And this guy thinks he can continue to operate in secrecy? It’s time someone in state government stood up to this thug.
Reforming our state’s pension fund isn’t going to be accomplished by overpaid bureaucrats like Borden slipping off to meet in secret with well-connected special interests. It’s going to be accomplished by our “Republican” leaders getting off of their asses and making long-overdue reforms to the way our state’s pension fund is managed.
We’ve previously offered our thoughts on pension fund reform – ideas which were echoed by Loftis in this op-ed.
It’s time to pass those reforms – and pull the plug on Borden and his taxpayer-funded “get rich quick” scam.
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By UpAllNight November 28, 2011 at 11:58 am
See Corzine, John.
By Miles November 28, 2011 at 12:04 pm
How can a state employee refuse one of his bosses, and the state treasurer, his travel schedule and calendar? Is there not a law or something about this?
By Great Job! November 28, 2011 at 12:10 pm
You’re doing a great job Will.
One little tidbit I’d like to know, how does Borden pay the taxes on the Lambo?
$10 says if he’s angling for a mere $66 grand to fluff his pillow I’d be more than willing to bet he found some way to use his gov’t connections to avoid paying the huge taxes on the Lambo.
I hope enjoys the anal probe he’ll be getting from Will and the variety of those media outlets partaking in his sloppy seconds.
By Hal November 28, 2011 at 12:48 pm
Why is the AP or State newspaper not on this?
By W-4 November 28, 2011 at 1:02 pm
This being corrupt, nontransparent, political and involving billions of taxpayer dollars, I presume the Nexsen Pruet law firm and Ric Tapp have “volunteered.”
By jimlewis,owb November 28, 2011 at 1:59 pm
“It’s time someone in state government stood up to this thug”
Would be nice but it is a fact that cockroaches cannot stand up. They can crawl, they can scurry, they can hide, they can raise up, they can fly, they can even move sideways but the little sons of bitches cannot stand up.
In fact it would be in the best interest of South Carolina Taxpayers if the bastards stayed close to the ground. If they were able to stand, odds are they would spot something they have left untouched and immediately move in to reduce it to crap.
Looks like the only thing that going to get a Fat Bastard like Borden is Karma. Something like a malfunctioning traffic light combined with full loaded cement mixer, or a set of tires off a recalled Ford Explorer, or a piece of under cooked Filet Mignon, or maybe when he takes his weekly dump he will strain just a tad too much and one those damn brain vessels he has overworked figuring out ways to fuck everybody will give way.
Yep, Karma
By palmetto populist November 28, 2011 at 4:03 pm
The FOIA provides remedies for public agencies and officials failing to follow it. I believe that FITS can and should go to the nearest magistrate and swear out a warrant for the arrest of the head of the agency.
Here’s the actual FOIA statutory wording –
SECTION 30 4 15. Findings and purpose.
The General Assembly finds that it is vital in a democratic society that public business be performed in an open and public manner so that citizens shall be advised of the performance of public officials and of the decisions that are reached in public activity and in the formulation of public policy. Toward this end, provisions of this chapter must be construed so as to make it possible for citizens, or their representatives, to learn and report fully the activities of their public officials at a minimum cost or delay to the persons seeking access to public documents or meetings.
SECTION 30 4 100. Injunctive relief; costs and attorney’s fees.
(a) Any citizen of the State may apply to the circuit court for either or both a declaratory judgment and injunctive relief to enforce the provisions of this chapter in appropriate cases as long as such application is made no later than one year following the date on which the alleged violation occurs or one year after a public vote in public session, whichever comes later. The court may order equitable relief as it considers appropriate, and a violation of this chapter must be considered to be an irreparable injury for which no adequate remedy at law exists. (b) If a person or entity seeking such relief prevails, he or it may be awarded reasonable attorney fees and other costs of litigation. If such person or entity prevails in part, the court may in its discretion award him or it reasonable attorney fees or an appropriate portion thereof.
SECTION 30 4 110. Penalties.
Any person or group of persons who willfully violates the provisions of this chapter shall be deemed guilty of a misdemeanor and upon conviction shall be fined not more than one hundred dollars or imprisoned for not more than thirty days for the first offense, shall be fined not more than two hundred dollars or imprisoned for not more than sixty days for the second offense and shall be fined three hundred dollars or imprisoned for not more than ninety days for the third or subsequent offense.
Find a circuit court judge, swear out a warrant, make the shiftless sons of bitches pay out $100 and — to find the truth — submit anotehr FOIA and make them keep on paying.
That would stop this shit — or crowd up the jails.
By Talbot November 28, 2011 at 5:50 pm
John Rainey, where are you? We need you tp further expose Nimrata’s corruption such as this one. Get her under oath.
By palmetto populist November 28, 2011 at 6:45 pm
What we need is for Will Folks to grow a pair, bring out all those lawyers he says are backing his play, and swear out warrants before a circuit judge against various elements of the Trikki Nikki administration that cannot –
– provide info as required by FOIA
– meet clearly defined deadlines established by the FOIA
– and merit obvious financial and perhaps jail time punishments specified by the FOIA,
Man up, little Will. Or, STFU
By Helen November 28, 2011 at 7:03 pm
It has long been rumored that the Commission is “on the take”. I have heard of very nice parties, and underhanded deals. I hope this is investigated by SLED.
By palmettoconservative November 28, 2011 at 7:13 pm
Your buddy Curt had a chance to reform the pension system at the last BCB meeting, but he abstained on the vote. A real profile in courage.
Speaking of transparency, when will you tell your readers about how much Curtis pays you to write this stuff?
By Billy November 28, 2011 at 7:20 pm
So this guy Borden can make a million dollars a year and not report to anyone???
Pay me a million bucks and I will install a cam in my bathroom for the boss to watch!
Damn, no wonder this sate is so messed up.
By ChasGuy November 28, 2011 at 8:03 pm
We continue to hear these horror stories of government hiding “in plain sight”. We continue to hear our state being sold down the proverbial road.
Will we ever stop acting like a third world country? Will we ever be, as a government, be honest.
Pink slips need to fly. The million dollars a year leader Bob Borden should get his first.
By Really? November 28, 2011 at 8:10 pm
“Find a circuit court judge, swear out a warrant, make the shiftless sons of bitches pay out $100″
I don’t know, if I’m a shifty lowlife bastard I’d say $100 fines every 8 months is a pretty damned cheap/effective way to do what I want for as long as I’m in power.
By Simpson November 28, 2011 at 8:37 pm
Really?
$100 fine to invest 24 billion dollars is sweet deal. Can you imagine the freebies you can get with those billions. I bet he gets good Christmas presents. Really good Christmas presents. I mean really really good presents.
By ConfederateLiberal November 28, 2011 at 9:44 pm
Bob gets what Bob wants because he is tight with Reynolds Williams, Jim Powers, and Allen Gilliespie, the three Commission members who helped Borden cook up and try to ram Newco through before anyone found out about it. Williams and Powers are major ego trippers who still believe they have the right to do what they damn well please with the pension fund’s assets and are accountable to no one. BTW, PalmettoConservative, you sure you aren’t ole Reynolds himself. Your post sounds an awful lot like his recent tirade against Curtis, the only voting member of the Commission looking out for the retirees and the taxpayers. Come on now, fess up.
By palmetto populist November 28, 2011 at 10:03 pm
Couple responses –
$100 fines trigger IRS attention. They put events and people on the radar screen.
Second, let’s quick bitching about lack of transparency when it is so fuckking easy to introduce the cleansing bleach of public exposure to this issue.
Third, all this shit goes on because people do not have the balls to fight a corrupt and corrupting system.
They will buy you off with big bucks rather than pay that $100.
Or, give me a better reason that — with this law on the books, with the mainstream/blogging media incentivized to nourish and protect it — you do not hear of anyone with the balls to go to a circuit judge and say, hey, this is so fucking wrong.
Will, please step to the plate.
By Really? November 28, 2011 at 11:39 pm
“$100 fines trigger IRS attention. They put events and people on the radar screen.”
Really? Really!?
Come on man, Nikki has out and out lied about money she received in “consulting” and not even bothered to file it on her return ALL OF WHICH IS PUBLIC INFORMATION PUBLISHED IN VARIOUS MEDIA…do you see the IRS knocking on her door?
lmao…I really wish what you said is true, but it’s not. PERIOD. $100 fines in the scope of IRS audits aren’t even equivalent to the farts out of the ass of a dying nursing home patient.
By Reply November 29, 2011 at 7:23 am
I have spent more than 25 years in state government. My knowledge and my sources are impeccable.
I hear there is about to be a bomb, perhaps it should be called an “A bomb”, dropped on the commission. My sources say it is a game-changer.
Fasten your seat belts. This ought to be great.
By Scared to Say December 5, 2011 at 9:51 am
I’d not worry too much about what you’d find on an expense report, because the lavish spending is being done by the Strategic Partners, so it would never show up in Bob’s reporting.