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A $1.8 billion accounting error snowballed over 10 years in South Carolina—and could cost the state’s treasurer his job

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For the first time in over two centuries as a U.S. state, South Carolina lawmakers are going to try to remove a statewide elected official from office.

The Republican-dominated Senate on Wednesday decided to hold a hearing to decide if Republican state Treasurer Curtis Loftis should be removed from office over a $1.8 billion accounting error and then failing to report the problem to the General Assembly. Loftis says the attempt to oust him is politically motivated.

Loftis can be removed if two-thirds of the Senate and House vote against him. At a hearing on April 21, senators will present their case and Loftis or his attorney will have three hours to respond. The House would then follow suit with their own hearing.

Money that didn’t exist

58-page report released last week on the accounting error said South Carolina’s books have been inaccurate for 10 years and continue to not be corrected. The state paid millions of dollars to forensic accountants who eventually determined the missing money was not cash the state never spent, but instead was a series of errors in balancing books and shifting accounts from one system to another that were never reconciled.

The state should “not consign the ongoing fiscal oversight — the banking and investment functions of our state — to continued incompetence. In sum: if the treasurer cannot keep track of the treasury, then he should not remain treasurer,” senators wrote in their report that included more than 600 pages of exhibits.

Loftis responded by pointing out he has won four elections since 2010 and called the Senate investigation a power grab so they can get support for a bill to have the treasurer become an appointed position.

“South Carolina’s financial threat isn’t from mismanagement or missing money. The real danger comes from a relentless, politically motivated attack on my office — one that risks undermining our state’s financial reputation, increasing taxpayer costs, and stripping voters of their right to elect a Treasurer who works for the people, not special interests,” Loftis wrote in a statement.

The origins of the mistake

The problems started as the state changed computer systems in the 2010s. When the process was finished, workers couldn’t figure out why the books were more than $1 billion out of whack. A fund was created to cover the accounting error and over the years more was added on paper to keep the state’s books balanced.

The error came to light after Comptroller General Richard Eckstrom resigned in March 2023 over a different accounting mistake and his replacement reported the mystery account.

The report said Loftis not only ignored or failed to find mistakes made by his office but also rejected or slowed down attempts to independently investigate the problem.

“The treasurer tried to cover them up. He covered it up for the better part of seven to eight years,” Republican Sen. Stephen Goldfinch said.

A Senate subcommittee has held hearings to question Loftis under oath. They have been contentious. Loftis has slammed papers, accused senators of a witch hunt and threatened to get up and leave.

Showdown with senators

One move that particularly angered senators occurred after a lawmaker asked Loftis why he didn’t file reports on the state finances, as required by law. The treasurer said he would publish a report online that could include bank account numbers and other sensitive information.

Senators were in an uproar the next day. They said the report could easily be published without information that would allow cybercriminals to empty the state’s accounts.

They had the governor and the head of the state police find Loftis and demand he not publish the report. The treasurer said he was just following the Senate’s instructions.

“His volatile temperament and angry demeanor degrade those who are charged to work with him to secure the financial standing of South Carolina,” senators wrote in last week’s report.

The report also said Loftis is responsible for millions of dollars to be spent through his lack of oversight and later lack of cooperation investigating the account.

What happens next?

The Senate approved Wednesday what is called the “removal on address” hearing by a voice vote with no opposition. Lawmakers have never taken the constitutional step to its conclusion.

The resolution’s future is a little more murky in the House, where no Republicans have come out to forcefully call for the treasurer’s removal.

Republican Gov. Henry McMaster has also suggested removing Loftis from office is too drastic, but the governor does not have a major role in the process.

This story was originally featured on Fortune.com



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RFK Jr. heads to West Texas, where a second child has died from measles-related causes as outbreak nears 500 cases

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U.S. Health Secretary Robert F. Kennedy, Jr. traveled to West Texas on Sunday after a second unvaccinated school-aged child died from a measles-related illness.

Ahead of a “Make America Healthy Again” tour across southwestern U.S., Kennedy said in a social media post that he was in Gaines County to comfort families who had to bury two young children who have died. Seminole is the epicenter of a measles outbreak that started in late January and continues to swell, with nearly 500 cases in Texas alone.

He said he was also working with Texas health officials to “control the measles outbreak.”

The child did not have underlying health conditions, and died Thursday from “what the child’s doctors described as measles pulmonary failure,” the Texas State Department of State Health Services said Sunday in a news release. Aaron Davis, a spokesperson for UMC Health System in Lubbock, Texas, said that the child was “receiving treatment for complications of measles while hospitalized.”

This is the third known measles-related death tied to this outbreak. One was another school-aged child in Texas and the other was an adult in New Mexico. Neither were vaccinated.

Kennedy, an anti-vaccine advocate before ascending to the role of nation’s top health secretary earlier this year, has resisted urging widespread vaccinations as the measles outbreak has worsened under his watch.

“The most effective way to prevent the spread of measles is the MMR vaccine,” Kennedy said in a lengthy statement posted on X. The measles, mumps and rubella vaccine has been used safely for more than 60 years and is 97% effective against measles after two doses.

U.S. Centers for Disease Control and Prevention teams have been “redeployed,” Kennedy added, although the nation’s public health agency never relayed it had pulled back during the growing crisis. Neither the CDC nor the state health department included the death in their measles reports issued Friday, but added it to their counts Sunday.

Nationwide, the U.S. has more than double the number of measles cases it saw in all of 2024.

More than two months in, the West Texas outbreak is believed to have spread to New Mexico, Oklahoma and Kansas, sickening nearly 570 people. The World Health Organization also reported cases related to Texas in Mexico. The number of cases in Texas shot up by 81 between March 28 and April 4, and 16 more people were hospitalized.

Republican U.S. Sen. Bill Cassidy from Louisiana, a liver doctor whose vote helped cinch Kennedy’s confirmation, called Sunday for stronger messaging from health officials in a post on X.

“Everyone should be vaccinated! There is no treatment for measles. No benefit to getting measles,” he wrote. “Top health officials should say so unequivocally b/4 another child dies.”

A CDC spokesperson noted the efficacy of the measles vaccine Sunday but stopped short of calling on people to get it.

Departing from long-standing public health messaging around vaccination, the spokesperson called the decision a “personal one” and said people should talk to their doctor and “should be informed about the potential risks and benefits associated with vaccines.”

Misinformation about how to prevent and treat measles is hindering a robust public health response, including claims about vitamin A supplements that have been pushed by Kennedy and holistic medicine supporters despite doctors’ warnings that it should be given under a physician’s orders and that too much can be dangerous.

Doctors at Covenant Children’s Hospital in Lubbock, where the first measles death occurred, say they’ve treated fewer than 10 children for liver issues from vitamin A toxicity, which they found when running routine lab tests on undervaccinated children who have measles. Dr. Lara Johnson, chief medical officer, said the patients reported using vitamin A to treat and prevent the virus.

Dr. Peter Marks, the Food and Drug Administration’s former vaccine chief, said responsibility for the death rests with Kennedy and his staff. Marks was forced out of the FDA after disagreements with Kennedy over vaccine safety.

“This is the epitome of an absolute needless death,” Marks told The Associated Press in an interview Sunday. “These kids should get vaccinated — that’s how you prevent people from dying of measles.”

Marks also said he recently warned U.S. senators that more deaths would occur if the administration didn’t mount a more aggressive response to the outbreak. Kennedy has been called to testify before the Senate health committee on Thursday.

Experts and local health officials expect the outbreak to go on for several more months if not a year. In West Texas, the vast majority of cases are in unvaccinated people and children younger than 17.

With several states facing outbreaks of the vaccine-preventable disease — and declining childhood vaccination rates nationwide — some worry that measles may cost the U.S. its status as having eliminated the disease.

Measles is a respiratory virus that can survive in the air for up to two hours. Up to 9 out of 10 people who are susceptible will get the virus if exposed, according to the CDC. The first shot is recommended for children ages 12 to 15 months, and the second for ages 4 to 6 years.

This story was originally featured on Fortune.com



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Trump advisers say 50-plus countries have reached out for tariff talks

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CEOs had said they’d speak out against Trump if stocks sink 20%. After the latest meltdown, they’re still silent but may be ready to act 

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  • Corporate executives who gathered at last month’s Yale CEO Caucus were surveyed on when they should collectively voice their concerns about President Donald Trump, and most said it would take a 20% drop in the stock market. The Nasdaq and Russell 2000 have already entered bear market territory, while the S&P 500 is getting closer.

CEOs have largely avoided public criticism of President Donald Trump as he rolled out his tariffs, but the recent stock market carnage may trigger a change.

Dozens of top corporate executives who gathered at last month’s Yale CEO Caucus were surveyed in an impromptu poll on when the stock market should cause them to collectively voice their concerns about Trump.

According to the Wall Street Journal, 44% of CEOs said a 20% drop, 22% said a 30% decline, 10% said a 50% crash, and 24% said it’s not their role.

The question didn’t specify the starting point for measuring the market loss. By some measures, stocks have crossed or are near the 20% threshold.

The Nasdaq and Russell 2000 have tumbled more than 20% from their 52-week highs, entering bear market territory. The S&P 500 is down 17%, and the Dow Jones Industrial Average is off 15%.

The losses are less steep, however, if you start from Trump’s inauguration or when the poll was conducted in mid-March. Still, the two-day stock rout after “Liberation Day” wiped out $6 trillion in market cap and marked the worst meltdown since the early days of the COVID-19 pandemic in 2020.

To be sure, some executives have reportedly voiced concerns about tariffs behind closed doors in earlier meetings with the president and his staff. But in public, they have remained reticent to avoid angering Trump.

Yale School of Management professor Jeffrey Sonnenfeld, who organized the March summit, told the Journal on Saturday that top CEOs have expressed frustration to him, but think trade groups should more forcefully oppose the tariffs or make collective statements.

“They don’t want to be the lightning rod,” he said. “Then it becomes personalized to them.”

Similarly, an unnamed board member of a US company told the Financial Times on Friday, “You don’t want to be the barking dog for everyone else because you’re going to be the one who will get shot.”

Another corporate board member told the FT the best approach is to lobby Trump and his advisers privately and say that tariffs would hit his core constituents with higher prices and unemployment.

For its part, the Business Roundtable said in a statement on Wednesday that it supports Trump’s goal of securing fairer trade deals but warned “universal tariffs ranging from 10-50% run the risk of causing major harm to American manufacturers, workers, families and exporters.”

But there may be signs of more opposition from Corporate America.

Trump adviser Elon Musk appeared to break with the White House’s trade war on Saturday, when the Tesla CEO expressed hope for a “zero-tariff” system between the US and Europe that would create “a free-trade zone.”

And earlier on Saturday, Musk belittled White House official Peter Navarro, who was reportedly a key figure on the tariff policy, suggesting on X that his Harvard degree is “a bad thing” and that he has never built anything.

Meanwhile, tech journalist Kara Swisher posted on Threads on Friday that “a passel of high profile tech and also finance leaders is making a trip to Mar-a-Lago to read Trump the riot act — um talk common sense — to him on the tariffs.”

She added that Musk was also in their crosshairs for “his ‘idiotic chainsaw’ antics and more,” alluding to the drastic cuts to federal agencies this his Department of Government Efficiency is spearheading.

The White House and Tesla didn’t immediately respond to requests for comment.

On Sunday, Treasury Secretary Scott Bessent gave no indication that Trump will back off from this aggressive tariffs and said there doesn’t have to be a recession, despite Wall Street pricing in greater odds of a downturn this year.

In an interview with NBC’s Meet the Press, he also downplayed the massive stock selloff as a short-term reaction.

“One thing that I can tell you, as the Treasury secretary, what I’ve been very impressed with is the market infrastructure, that we had record volume on Friday. And everything is working very smoothly so the American people, they can take great comfort in that,” he said.

This story was originally featured on Fortune.com



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