South Carolina Treasurer Blasts Investigatory Referral

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by WILL FOLKS

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South Carolina state treasurer Curtis Loftis is pushing back against an investigatory referral made against him by an executive branch watchdog – while at the same time claiming the report containing the referral, prepared by the S.C. Office of Inspector General (SCOIG), cleared him of any wrongdoing.

According to an excerpt of the report shared with FITSNews prior to its release, the SCOIG “identified instances of program mismanagement and partial compliance with statutorily mandated reporting.”

“As such the SCOIG is required to make a report to the governor of South Carolina of these findings,” it noted. “Whether these instances rise to the level of misconduct is beyond the scope of the SCOIG’s purview, and analysis and requires a secondary level of review by the appropriate law enforcement or prosecuting authority.”

According to Loftis’ enemies, that’s a clear sign Loftis has engaged in criminal activity. According to Loftis, its more of the same political “witch hunt” that’s been targeting him for years.

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State senators – led by fiscal liberal Larry Grooms – have been trying to impeach Loftis and remove him from office. Grooms took to the well of the Senate on its final day to excoriate the treasurer for his alleged “malfeasance.”

“He lies,” Loftis said of Grooms.

“For more than three years, my office has faced repeated investigations, accusations, and political attacks — many of them fueled by headlines that suggested far more than the facts ever supported,” Loftis added in a statement provided to FITSNews. “Today’s Inspector General report confirms an important truth: there was no finding of fraud, theft, personal enrichment, or criminal misconduct by me or my office.”

Loftis claimed the report uncovered “areas where processes can be improved, and we take those recommendations seriously — as we always do.” 

A key component of the SCOIG report referenced an ongoing inquiry into the S.C. State Election Commission (SCVotes) and its controversial use of a lease program administered by the treasurer’s office. This deal – initiated by disgraced former SCVotes director Howie Knapp – involved the purchase of approximately 3,000 DS300  scanner/tabulator machines, which are manufactured by Omaha, Nebraska-based Election Systems & Software (ES&S).

Knapp was fired – and later criminally charged – in connection with various scandals at SCVotes, but it’s not immediately clear whether the contract with ES&S is part of the ongoing investigations into his conduct.

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RELATED | SCVOTES SENDS DATA TO FEDS

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According to the SCOIG report, Loftis’ office “failed to recognize that the SEC was unable to make the first loan payment” on the master lease agreement loan of $30.8 million.

“While the legislature appropriated funds to the SEC, the funds were not set for disbursement until February 2026 – four (4) months after the first payment was due,” the report noted. “The SEC did not have sufficient funds on hand to make the payment without a September 2025 disbursement of the appropriations.”

Loftis’ office “missed opportunities” to identify SCVotes’ fiscal issues, accusing the treasurer of failing to conduct “basic due diligence of the borrower” which could have avoided the state being placed on the hook for nearly $140,000 in additional interest payments.

“This exposed taxpayers to millions in avoidable liquidated damages and violated the STO’s core obligation to faithfully discharge official duties and protect the state’s fiscal interests,” the report found.

“Regarding the State Election Commission lease, the facts matter,” Loftis said. “The Election Commission requested the financing, certified its legal compliance, and represented that funding would be available for repayment. After that agreement was in place, the General Assembly changed the timing of the appropriation intended to make the payment. When that problem surfaced, my office stepped in to help prevent penalties and protect taxpayers.”

“The Treasurer’s Office has successfully completed more than 100 master lease transactions over many years without a single repossession or late payment penalty — ever,” Loftis added. “The language used by the inspector general regarding that program is regrettable and does not reflect its documented history.”

This is a developing story… please check back for updates.

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THE REPORT…

(S.C. Treasurer)

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ABOUT THE AUTHOR…

Will Folks is the founding editor of the news outlet you are currently reading. Prior to founding FITSNews, he served as press secretary to the governor of South Carolina. He lives in the Midlands region of the state with his wife and eight children.

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