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The State House Gavel shares updates about the South Carolina General Assembly, including legislative actions, debates and discussions. Featuring news and interviews, so you have access to the latest developments in policy and decisions that shape South Carolina’s future.

The State House Gavel: Auditor resigns amid $1.8B saga, DNC chair forum in SC

The first year of the legislative session is set to end May 11, which is less than a month away. Crossover Day was April 10 which is a time when bills have to clear one chamber to another in order to have a higher chance of making it to the governor’s desk before Sine Die this year.
Gavin Jackson
/
SCETV/SC Public Radio

Statehouse reporters Gavin Jackson, Russ McKinney and Maayan Schechter are back at the Capitol reporting what you need to know when lawmakers are in Columbia. They'll post news, important schedules, photos/videos and behind-the-scenes interviews with policymakers.

It's Friday and the second legislative week is done.

And if you thought Week 1 was a doozy, this week was too.

Before we get into all the hubbub from the Statehouse, we want to say thank you for reading The State House Gavel. Months ago, we decided it was beyond time for a reporter-style notebook from reporters who've covered the Statehouse for years to tell you what's going on when the state's most important policymakers are in Columbia.

It's run by Gavin JacksonRuss McKinney and Maayan Schechter, previewing and capturing all things South Carolina Statehouse with our notes, things we see, photos/video and audio.

Notebook highlights:

  • State Auditor George Kennedy resigns, the second major casualty over the multi-year and multibillion-dollar accounting error that led to the resignation of then-Comptroller General Richard Eckstrom. Now questions remain about Treasurer Curtis Loftis's future as he rejects calls to step down.
  • Gov. Henry McMaster talks to SC reporters about VC Summer's future, energy needs, whether he will endorse in the 2026 GOP primary race for governor and what becoming the longest-serving governor in state history means.
  • Biden-appointed U.S. Attorney for South Carolina Adair Boroughs takes the TWISC desk to talk to host Gavin Jackson and who will be the next top federal prosecutor?
  • South Carolina Democrats host candidates for Democratic National Committee chair in Charleston to answer questions about how they'd change the role and whether South Carolina should keep its No. 1 spot on the nominating calendar. (Our very own Maayan Schechter is moderating.)
Russ McKinney, Maayan Schechter and Gavin Jackson
SCETV
Russ McKinney, Maayan Schechter and Gavin Jackson

SC auditor resigns but $1.8B error mess will go on

If your idea of good drama is following a story about an accounting error and the continued fallout, consider yourself lucky — your show is getting renewed for another season or two.

We scooped Thursday that South Carolina's state Auditor George Kennedy resigned amid a federal U.S. Securities and Exchange Commission and numerous legislative hearings over a $1.8 billion accounting error. Kennedy, and the outside auditing firm his office hired, had signed off on annual state financial reports that misstated state cash balances and was aware of the fund containing the $1.8 billion.

Brief background: Two years ago, it was *publicly* disclosed that the state was dealing with an embarrassing $3.5 billion accounting error that transpired when the state was moving from one accounting system to another. It led to the rather swift resignation of then-Comptroller General Richard Eckstrom (the state's chief accountant) in March of last year. Months later, news breaks that there was a mysterious $1.8 billion fund that lawmakers aren't sure if that is actual cash (and therefore available to potentially spend) or not. The state spends $3 million to hire outside audit firm AlixPartners, which discovers $1.6 billion of that total is not real money and the remainder was already spent.

Speeding up to this week.

The Senate Finance Committee hears from AlixPartners, and it's safe to say most senators were not thrilled with the three offices with oversight responsibility of the fund: those of Comptroller, Treasurer and Auditor.

And with Eckstrom out (McMaster appointed now-Comptroller Brian Gaines to fill the role) that left two people under the heat lamp: Kennedy and Republican Treasurer Curtis Loftis.

Thursday morning, Kennedy offered his resignation to the State Fiscal Accountability Authority, or SFAA, and to the governor, who accepted it.

"It has been both an honor and a privilege to serve the State of South Carolina during the past nine years," Kennedy wrote in the letter obtained by SC Public Radio. "However, I believe that it is in the best interest of the Office of the State Auditor that I resign from my position as State Auditor effective today."

In closing, Kennedy wrote that he is willing to help with the transition and added, "I also welcome the opportunity to provide my thoughts on how the Office of the State Auditor can be strengthened for the future."

That now leaves an intense focus on Loftis, who has denied fault and dismissed requests to step down.

Hours after Kennedy resigned, the Post and Courier published an op-ed by Loftis, in which he called efforts to make his position appointed by the governor rather than elected by voters "misguided."

"A state treasurer appointed by the governor would answer to special interests, not directly to the people," Loftis wrote.

What's next: We've reported previously that Senate Finance wants to meet possibly Tuesday to continue hearings. We've also heard both the House Ways and Means Committee and Senate Finance intends to ask Loftis, Kennedy and Gaines to testify.

Then-State Auditor George Kennedy sits in a March, 26, 2024, State Fiscal Accountability Authority meeting. Kennedy resigned Thursday, Jan. 23, 2025, as the Legislature holds hearings over an audit looking into a $1.8 billion accounting error.
RUSS MCKINNEY
Then-State Auditor George Kennedy sits in a March, 26, 2024, State Fiscal Accountability Authority meeting. Kennedy resigned Thursday, Jan. 23, 2025, as the Legislature holds hearings over an audit looking into a $1.8 billion accounting error.

McMaster talks nuclear and gov's race

Gov. Henry McMaster made news Thursday, when he announced his appointment for the next director of the state's Probation, Parole and Pardon Services: Jake Gadsden, a North Charleston native who has spent a long career in corrections, most recently at the state's corrections department.

After, reporters took the opportunity to pepper the governor with a few questions off topic, ranging from V.C. Summer to the 2026 governor's race and how he feels about becoming the state's longest-serving governor in history (you read that right).

Here are some highlights, in part:

What does it feel like to you to as of next week be the longest-serving governor: "Well, all you have to do is just stay alive. This is a great office. I think a lot of times we don't realize how great this office in South Carolina is with our history. ... Our state is a unique place. And, again, people who have been to many other places tell us that. And sometimes we don't realize how fortunate we are to be here. That puts a real duty and opportunity on us to take advantage of all these advantages we have to make it a better place."

Santee Cooper put out a RFP asking someone to finish building the reactors at the V.C. Summer site. Do you support this move: "I do. I think we have to have ask much power as we can get."

Have you had conversations with companies or groups who might be interested in coming in and finishing the project: "Yes, lots of them over the last months." (McMaster would not disclose who.)

1st District Congressman Nancy Mace says she's considering a run for governor in 2026. What do you think about her candidacy and will you endorse in the GOP primary: I think we will have a good group running, and I'll be watching. Too early to say (on an endorsement)."

Gov. Henry McMaster on Thursday, Jan. 23, 2025, in the Statehouse announces Jake Gadsden as his appointment to become the next director of the South Carolina Department of Probation, Parole and Pardon Services.
MAAYAN SCHECHTER
Gov. Henry McMaster on Thursday, Jan. 23, 2025, in the Statehouse announces Jake Gadsden as his appointment to become the next director of the South Carolina Department of Probation, Parole and Pardon Services.

The Exit Interview: SC's US attorney Adair Ford Boroughs

Adair Ford Boroughs, former President Joe Biden’s pick for US Attorney for South Carolina, was installed back in July 2022.

And even with the change of administrations on Monday to Republican President Donald Trump, she’s still in the position — until told otherwise.

As U.S. attorney for the state, her office of 140 people oversees all prosecutions of federal crimes within South Carolina.

That has so far included securing five federal hate crime convictions, such as in the case of United States v. Daqua Ritter, the first federal trial in the nation under the Matthew Shepard and James Byrd R. Hate Crimes Prevention Act for a hate crime murder based on gender identity

Host Gavin Jackson spoke with Boroughs on This Week in South Carolina. Here's a preview:

Tell us about the significance of prosecuting those hate crimes cases here where we are one of two states without a hate crimes law:

"I think it's more important in our district than maybe some other districts, because if we don't do it, no one will. And that was a really important thing for me when we were deciding how, what to prioritize and how to spend resources. If there's someone else that can and will do this work, that's one thing, but when we're the only ones able to do it, it means we're the only ones able to protect the public in those spaces."

What do you see as the biggest challenges for your, successor:

"Gun violence and and the ubiquity of guns is a real problem. When I came into this job, I spoke to sheriffs and to chiefs, to federal law enforcement officers, to the bench and community groups. And no matter who I talked to, guns was the problem. Firearms. And we are seeing now, machine conversion devices, little pieces of plastic that you can stick on a gun and turn them into automatic weapon that is frankly not controllable."

Catch the full interview at 7:30 p.m. Friday on SCETV or YouTube.

What’s next for Boroughs: The position of South Carolina's US attorney is a big jumping off point. But Boroughs, who in 2020 lost in a run to 2nd District Congressman Joe Wilson, didn’t say what her next move would be, but that she’s interested in staying in the public sphere. There are plenty of races, positions she may be eyeing, but Boroughs is well aware of the challenges of running statewide with a "D" behind her name.

Who will succeed her: Who is going to be Trump’s pick, or, more specifically, who is going to be Sens. Lindsey Graham and Tim Scott’s recommendation to the president? That is still TBD. One name we have heard floated from several politicos is Bryan Stirling, director of the state's Department of Corrections. Another name swirling in circles, Columbia attorney Deborah Barbier, who was on Trump’s second impeachment team and represented the late Richard Quinn. We've also heard that with a bustling law practice and several high-profile appeals with millions on the line — translation: she might want to stay put. There are several other names in the mix, so stay tuned.

U.S. Attorney for South Carolina Adair Ford Boroughs speaks with Gavin Jackson on SCETV's This Week in South Carolina on Jan. 22, 2025.
AIMEE CROUCH/SCETV
U.S. Attorney for South Carolina Adair Ford Boroughs speaks with Gavin Jackson on SCETV's This Week in South Carolina on Jan. 22, 2025.

DNC chair hopefuls square off in CHS

South Carolina Democrats on Friday night will host a forum for six candidates vying to succeed South Carolina's own Jaime Harrison to be the next chair of the Democratic National Committee.

The list is: former Arkansas congressional candidate Quintessa Hathaway; former Gov. Martin O’Malley; Minnesota Democratic Farmer-Labor Party State Chair Ken Martin; political strategist Jason Paul; Homeland Security professional Nate Snyder; and Wisconsin Democratic Party State Chair Ben Wikler.

The candidates will face off at 6 p.m. in Charleston.

Maayan Schechter will play moderator.

And the entire forum can be watched live on the state party's YouTube page.

South Carolina Democratic Party Chairwoman Christale Spain and members of the delegation cheer during the first night of the Democratic National Convention at the United Center in Chicago on Aug. 19, 2024.
Gavin Jackson
/
SC Public Radio
South Carolina Democratic Party Chairwoman Christale Spain and members of the delegation cheer during the first night of the Democratic National Convention at the United Center in Chicago on Aug. 19, 2024.

Statehouse clips from around the state

Maayan Schechter (My-yahn Schek-ter) is a news reporter with South Carolina Public Radio and ETV. She worked at South Carolina newspapers for a decade, previously working as a reporter and then editor of The State’s S.C. State House and politics team, and as a reporter at the Aiken Standard and the Greenville News. She grew up in Atlanta, Georgia, and graduated from the University of North Carolina-Asheville in 2013.
Gavin Jackson graduated with a visual journalism degree from Kent State University in 2008 and has been in the news industry ever since. He has worked at newspapers in Ohio, Louisiana and most recently in South Carolina at the Florence Morning News and Charleston Post and Courier.
Russ McKinney has 30 years of experience in radio news and public affairs. He is a former broadcast news reporter in Spartanburg, Columbia and Atlanta. He served as Press Secretary to former S.C. Governor Dick Riley for two terms, and for 20 years was the chief public affairs officer for the University of South Carolina.