Republican Gov. Henry McMaster confirmed last week that ‘no money was lost’ after the bizarre find.
It appears the bank account appears to be the result of ongoing accounting troubles for the state, which began from a computer system transition in the late 2010s.
“It’s like going into your bank and the bank president tells you we have a lot of money in our vault but we just don’t know who it belongs to,” said Republican Sen. Larry Grooms, the individual leading a Senate panel investigating the problem.
Investigative accountants are now working hard to try and make some sense of the mess, thought it’s proving rather difficult.
And this recent fiasco is the latest trouble with the state’s books, which ultimately led to South Carolina’s top accountant resigning last year.
Elected Republican comptroller general Richard Eckstrom stepped down from his role in 2023 after his agency started double posting money in higher education accounts.
This unfortunately led to a $3.5 billion error that was all on paper, ultimately costing Eckstrom his job.
According to the South Carolina Daily Gazette, the paper error started in 2007, and is a problem that is still very much prevalent to this day.
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The current issue is the $1.8 billion includes actual cash placed in a bank account.
As a result, lawmakers are now asking why the money was in the bank account in the first place and why officials never addressed the problem once they discovered it.
It currently appears that when the state’s books were a little out of whack, money was moved over from somewhere into an account that helped balance the books.
“Politics really shouldn’t come into play. People prefer their accountants not be crusaders,” Grooms added.
A lot of questions still remain though, with state leaders not in the know about where the $1.8 billion came from, if that information is available anyway.
“It does not inspire confidence. But the good news is no money was lost,” Republican Gov. Henry McMaster stated.
