A report released Thursday by the South Carolina Office of the Inspector General (SCOIG) details the 13 month long investigation. It found the State Treasurer's Office (STO) approved a $31 million loan to the State Election Commission for new voting machines.
Part of the loan agreement? A near 214% compounding late fee that the report says caused a cycle of debt.
The report also found the voting machine purchase violated state procurement laws. Separate reporting errors shifted $65 million away from the state's general fund.
The report did not find evidence of criminal misconduct or fraud.
Treasurer Loftis denied fault in a statement and instead blamed the issues on the state's former elections chief.
“The STO’s master lease program did not cause or contribute to the missteps of the State Election Commission related to the acquisition and management of its voting machines,” said Loftis. “The Election Commission and its former staff are under investigation based on numerous allegations of wrongdoing and criminal activity.”
Loftis is seeking reelection for state treasurer in November. While he disagrees with some of the report’s findings, Loftis maintains the SCOIG’s report is evidence of his innocence when it comes to criminal allegations.
“Today’s Inspector General report confirms an important truth: there was no finding of fraud, theft, personal enrichment, criminal misconduct or malfeasance by me or my office,” Loftis said.
