ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

South Carolina found $1.8 billion in a mysterious bank account but has no idea where it came from

The investigation into the matter has raised more questions than answers.
PUBLISHED SEP 25, 2024
Cover image source: Getty Images - Andy Sacks (Representative)
Cover image source: Getty Images - Andy Sacks (Representative)

The South Carolina state government has a big money problem, and it doesn't know if it is good or bad. The state has about $1.8 billion in its bank account and no one knows how it got there or what they should do with it. Reports suggest that the state has been plagued with accounting problems for decades, and now the Senate has established a panel to investigate the matter. Leading the senate panel and the investigation is Republican state Sen. Larry Grooms. 



 

Story of the Mystery Fund

The story of the funds started when a junior staffer noticed the balance in a state account in late 2022. The error revealed Comptroller General Richard Eckstrom's ignorance of issues in his office. Eckstorm, who resigned last year, had received several warnings from experts, the SC Daily Gazette reported.



 

After the senate panel took charge of the investigation, it summoned state Auditor George Kennedy, who is responsible for independently reviewing the state’s financial record keeping. Kennedy told senators his office learned about the funds in 2017, in an off-the-radar account. However, they waived it off in the annual audits, believing it was a temporary measure, part of the accounting system changeover.



 

The state went through a decade-long transition of shifting to a new accounting system between 2007 and 2017, according to the SC Daily Gazette. Eckstrom and other state officials had testified that it was a chaotic transition. 

Thus, the mystery funds are estimated to be part of the fallout from a $3.5 billion accounting snafu that went unchecked for a decade. While Kennedy thought the funds had no “relevant” impact on the financial statements, they were proven wrong. 

The bank account is now being examined by state and private accountants, CBS News reported. 

Investigative accountants are still working through the mess to figure out the origin of the funds. According to the Senate leaders, it seems that every time the state's books were out of order, the money was shifted from somewhere into an account to possibly help balance things out, the CBS report said. 

However, lawmakers said that the state's financial leaders are yet to provide any concrete answers as to why, the $1.8 billion was parked in the largely logistical account during the transition. Furthermore, Sen. Grooms has said that it is also unclear why nobody tried to fix it either. Thus, it is clear that despite Eckstorm's departure and Gov. Henry McMaster’s appointment, problems with the state's financial system remain. 

South Carolina Gov. Henry McMaster walks off the stage during a rally | Getty Images | Photo by Sean Rayford
South Carolina Gov. Henry McMaster walks off the stage during a rally | Getty Images | Photo by Sean Rayford

While lawmakers are demanding answers from State Treasurer Curtis Loftis as to why they didn't address the extra funds, Curtis in a statement said it wasn't his office's job. The comptroller general "is attempting to shift responsibility to clean up its mess to the Treasurer," Loftis wrote in a letter, CBS reported.



 

Loftis also stated that his staff spent thousands of hours researching the account, while the Comptroller General's Office refused to meet with them or share information. He said it was impossible to find the source in the currently assigned timeline. 



 

On the other hand,  Loftis, whose job is primarily to write checks for the state, said that he invested the money in the mystery account and made the state nearly $200 million in interest. While this could be a silver lining, it also raised questions about why he didn't let the General Assembly know about the money. 

MORE ON MARKET REALIST
The guest had no idea about the item being a Tiffany product and being embedded with a rare gem.
14 hours ago
The host was baffled by the goof up that the contestant made between two words.
15 hours ago
Carey showed that he has got the weapon of sarcasm, and he isn't afraid to use it.
16 hours ago
Whatever the host was expecting, it was far away from what the contestant said on national TV.
17 hours ago
The guest was surprised to learn more about the item he had actually found on the street for free.
19 hours ago
After going through everything on the board, the player left Harvey in hysterics with his answer.
1 day ago
As it so turned out, the weird-looking floor lamp was a piece from a very famous studio.
1 day ago
Most contestants were consistently getting the answers wrong, and Harvey was worried about what was next.
2 days ago
Some claimed that they got the puzzle despite English being their second language.
2 days ago
The letter was written to a columnist in response to a piece taking a swipe at Sinatra.
2 days ago
In a special episode of Celebrity Family Feud, a WWE star decided to go for the one thing Harvey is known for.
2 days ago
Luck was shining for her as she was off to a flying start and won the car with a single card.
2 days ago
Sajak had a witty reply for the contestant who was fanboying over White during the game.
5 days ago
The model said that considering White's age she would also take the offer from Sony.
5 days ago
Sheila won a brand new entertainment unit, complete with an HD plasma TV and mini bar from Howard Miller.
6 days ago
The appraiser disclosed that Yoakum began painting in the 1960s and he created one unique piece of art every single day.
6 days ago
The entrepreneur also managed to get the sharks to taste the vegan alternative meant for pets.
6 days ago
Throughout the game Monica tried to calm her nerves by placing her right hand over her chest.
7 days ago
Harvey later realized that the contestant had a crush on him and they had a moment.
7 days ago
The host had warned the men in advance to not risk their marriage for some points.
Mar 24, 2025