Another day, another national media outlet exposing the ongoing failure of South Carolina’s corrupt, underperforming and anti-transparent pension fund.
This time it’s former Securities and Exchange Commission (SEC) investigator Edward Siedle writing for Forbes …
In his piece, Siedle explores not only the poor returns and rampant mismanagement of the state’s $25 billion fund (first exposed by crusading S.C. Treasurer Curtis Loftis) he also delves into the refusal of South Carolina’s leaders to address the growing debacle.
“If ever there was a state pension system in need of an in-depth forensic investigation, it’s got to be South Carolina’s,” Siedle wrote. “Yet, that’s precisely the level of scrutiny we were told in a tense meeting with the State Inspector General and Retirement System Investment Commission last month nobody in the room wanted.”
“Information about wrongdoing related to the pension’s massive alternative investments gamble that could, if the rolling dice end in snake eyes, bankrupt the state? No interest, thank you,” Siedle’s report continues.
He’s referring of course to the corrupt leadership of this fund – appointed by fiscally liberal S.C. Sen. Hugh Leatherman (RINO-Florence) and crony capitalist Gov. Nikki Haley.
They’ve also engaged in a non-stop vendetta against Loftis – receiving a capable assist from the state’s liberal mainstream media.
Siedle is having none of it, though … echoing the dire warnings Loftis has been issuing for the past three years while his office meticulously combed through the fund’s risky over-reliance on alternative investments.
“In my opinion, it’s going to take massive action to disarm the ticking megaton alternative investment time-bomb South Carolina pension officials created in secret with Wall Street technical assistance,” Siedle writes. “You can’t just walk away from these hedge, venture and private equity investments that should never have been made. The question is whether political support for dismantling the bomb rallies before, or not until after, the detonation and resulting irreversible wreckage.”
Tick-tock, tick-tock …
Every bit as surprising as Haley’s opposition to Loftis’ reform efforts? The failure of her Democratic opponents to pounce on this vulnerability.