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Harrell Responds to Haley Accusations

The fight over alleged ethics violations by Gov. Nikki Haley when she served as a member of the House is being heard far and wide from Columbia.

The governor claimed House Speaker Bobby Harrell was interfering with the House Ethics Committee investigation, which could be an ethics violation in itself. Harrell responded to those charges yesterday.

“Statements made by Governor Haley today at a press conference are simply not true.”

“It is not true to claim that lawyers for the House Ethics Committee were ‘directed’ to refuse to meet with the Governor’s lawyers in order to accept the documents the Committee requested. The truth is, the Governor’s lawyers did in fact present those documents directly to counsel for the Ethics Committee…”

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JMSC Responds but Does Not Answer Questions About Horry County Master in Equity Vacancy

Last week GSD published an article about discrepancies in several Judicial Merit Selection Commission (JMSC) press releases regarding an upcoming vacancy in the position of Horry County Master in Equity.
The story posed questions about the varying timeline of the time of the vacancy included in those releases.
After the story was published, David Hucks, editor of MyrtleBeachSC.com, sent an email to JMSC staff attorney Erin Crawford and commission members Sen. Luke Rankin and Rep. Todd Rutherford with a link to the GSD story requesting clarification of why the differing timeline was issued by the JMSC.
On Monday, Crawford sent an email response to Hucks. Both emails were shared with GSD.
Explaining why a media release was sent on 6/22/20 advertising for applications to JMSC for the Horry County Master in Equity position but the position was deleted from an amended press release four days, Crawford said, “JMSC issued a media release on June 20, 2020 announcing screening for Horry County Master in Equity (Judge Howe’s seat) and the successor to serve a new term to expire December 31, 2027. Since the new term would not begin until January 1, 2022, a subsequent media release was issued, deleting the seat from the 2020 screening.”
However, both the original media release and the amended media release listed Greenville County Master in Equity Charles B. Simmons, Jr., term ending December 31, 2021, as a position requesting applications for screening. No explanation as to why the Greenville County Master in Equity vacancy would be treated differently by the JMSC than the Horry County Master in Equity position.
According to the appointment message sent to the S. C. Senate by Gov. Nikki Haley on March 5, 2015, Howe was appointed to a six-year term beginning July 31, 2015 and ending July 31, 2021 so the Howe vacancy should have remained open for applications.
Crawford said in her email that the JMSC discovered the error in the date ending Judge Howe’s current term in Spring 2021.
Crawford went on to say in her email, “The media release issued on June 21, 2021, listed the Horry Co. MIE term as expiring June 30, 2027, when most judges end their term, instead of July 31, 2027. Masters in Equity terms are determined by implementation in their individual counties, not the schedule of most statewide judges. Pursuant to SC Code Section 14-11-20, Masters In Equity are appointed by the Governor (with the advice and consent of GA) for a term of 6 years and until their successors are appointed and qualify.”
Crawford failed to address why Judge Howe’s term was discovered by JMSC to end July 31, 2021, but was listed in a June 2021 JMSC media release as ending July 31, 2027. As Crawford stated, Master in Equity judges are appointed for six years and until their successors are appointed. How did Howe’s appointment in office get extended by six years? No Explanation!

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State Records Increase Suspicions About Clemmons Resignation and Judgeship Application

Earlier this week Grand Strand Daily published a story detailing questions about Alan Clemmons and his resignation from the SC House and subsequent application for Horry County Master in Equity appointment.
New information extracted from state government archives increase suspicions about the truth behind the Clemmons resignation subsequent application.
Clemmons won the Republican Primary for House District 107 on June 9, 2020 for nomination to what would have been his 10th consecutive term as a representative.
However, just one month later, at least as early as July 12, 2020, it became public knowledge that Clemmons was seriously considering resigning from his House seat immediately. Five days later, Clemmons notified House Speaker Jay Lucas of his resignation from office and sent an affidavit to the SC Election Commission, withdrawing from the nomination, stating he needed to spend more time with his family and his law firm had recently acquired new clients who would demand considerable time and work.
Clemmons had to swear to the Election Commission his resignation and withdrawal was for “non-political reasons” in order for the state Republican Party to schedule a special primary election to choose a new nominee.
According to the SC Senate Journal of March 5, 2015, Gov. Nikki Haley transmitted to the Senate the reappointment of Cynthia Ward Howe to a new six-year term as Horry County Master in Equity “with the term to commence July 31, 2015, and to expire July 31, 2021.”
On June 22, 2020, the Judicial Merit Selection Commission (JMSC) issued a media release announcing the commission was accepting applications for the Judicial offices listed in the release. Included in that release was the following, “A vacancy will exist in the office currently held by the Honorable Cynthia Graham Howe, Master in Equity, Horry County. The successor will serve a new term of that office, which will expire December 31, 2027.”
(Master in Equity judges are appointed to six-year terms. There was no explanation why a five-month gap existed between the end of Howe’s term and the apparent beginning of a new six-year term on December 31, 2021 to end December 31, 2027.)
Four days later, on June 26, 2020, the JMSC issued a “Media Release Amended” in which the only change was removal of the advertisement for applications for the Horry County Master in Equity position. The chairman of the JMSC for 2020 was Horry County Sen. Luke Rankin.

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SLED Report in Review by Solicitor

The SLED investigation report into allegations of wrongdoing by Horry County Council Chairman Johnny Gardner was delivered to the solicitor’s office late Thursday afternoon, Fifteenth Circuit Solicitor Jimmy Richardson confirmed to Grand Strand Daily today.

Richardson will receive a full briefing from SLED agents before releasing a statement about his conclusions, probably Monday.

The report included videotapes of all interviews conducted by SLED in the investigation, a complete copy of the recording of a November 30, 2018 meeting between Sandy Davis and Sherri Steele of the Myrtle Beach Regional Economic Development Corporation and Gardner and his business partner Luke Barefoot and other items related to the investigation.

According to Richardson, the report was subjected to peer review before its release, which means an agent not involved in the initial investigation checked the report for accuracy in its findings.

The attempt to smear Gardner was initiated by Horry County Administrator Chris Eldridge and Horry County Attorney Arrigo Carotti with a memo sent by Carotti, with the full concurrence of Eldridge, to council members after 6 p.m. December 19, 2018.

Before 6 a.m. December 20, 2018, the memo and a story connecting the words “Gardner” and “extortion” appeared on the website of a Columbia media outlet. The media outlet is the same one that attempted to smear Nikki Haley with allegations of illicit affairs when she was running for governor in 2010.

The less than 12 hours, evening and night hours, is much too tight for anything other than a pre-planned leak of the Carotti memo, labeled “Attorney Client Privileged”, and the accompanying sensationalized story.

Access to the memo was initially limited to the 12 members of council in December 2018 plus Eldridge and Carotti. Who leaked the memo? I can think of only three of the original 14 who could possibly think they would benefit from such a leak.

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The Dirty Tricks Campaign Against Johnny Gardner

We live in a political climate where dirty tricks are used to create rumors to smear those seen as enemies by the rumormongers.

These rumors, lies are what they really are, come in all shapes and sizes, but they have the same thing in common – to discredit the person they are aimed against.

How well they work depends on the gullibility of the audience they are targeted to influence.

Some of the more ridiculous rumors about public figures we have heard include:

Justice Brett Kavanaugh as a young man attended parties where women were routinely gang raped. That one pushed the envelope too far to be believed.

In late 2015 when Donald Trump had established himself as a serious contender for the Republican nomination, a fake story said he told a magazine in 1998 if he ever ran for president it would be as a Republican because “they’re the dumbest group of voters in the country” and that “he could lie and they’d still eat it up.” Rather than hurt him with Republican voters, Trump went on to win the nomination and election.

In the 2000 primary season, John McCain was accused of fathering an illegitimate black child, which was actually a child from Bangladesh that McCain and his wife adopted. This one stuck a bit with South Carolina voters as George Bush came from behind to win the South Carolina primary and go on to be elected president.

Rumors were circulated about Nikki Haley having multiple affairs during the 2010 primary season, which the voters disregarded. In fact, the rumors were so poorly presented that Haley vaulted from fourth place to win the Republican nomination and go on to twice being elected South Carolina Governor.

More recently, Horry County citizens have been presented with a rumor about county council chairman Johnny Gardner. Interestingly, the Columbia website that played a prominent part in publishing a leaked memo about the fictitious plot from county attorney Arrigo Carotti, written in conjunction with administrator Chris Eldridge, was the same website that played a prominent part in the Haley rumors.

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October is Italian American Heritage Month

October is officially designated as Italian American Heritage Month thanks to a bill passed in the SC General Assembly in March 2015.

The bill added Sec. 53-3-200 to the SC Code of Laws designating October of every year as Italian American Heritage month.

Sen. Ray Cleary chaperoned the bill through the SC Senate and former Rep. Nelson Hardwick performed the same duties in the SC House. It was signed into law by Gov. Nikki Haley on March 27, 2015.

The bill recognizes the many vital contributions of Italian Americans to the state in the political, social and economic systems of South Carolina.

Horry County resident Fred Nesta was recognized as the catalyst behind the effort to pass the bill. A member of Grand Strand Lodge 2868 of the Order of Sons of Italy in America and a past national state deputy of the order.

“This legislation is to recognize the efforts of all Italians and Italian-Americans who sacrificed to give future generations a better life,” said Fred Nesta. “Over the past decade, a heightened interest in our roots has come about, where we came from, what we stand for, recognition of the contributions of Italians and Italian-Americans and their influence in the world…this drives us to seek and learn more about our roots and share in the joy of our heritage with our entire community.

Nesta said members of local chapters of OSIA and other Italian clubs and organizations in South Carolina embody these interests and values which include giving back to the community through monetary donations and services and to share their Italian heritage through local and national Italian festivals and other endeavors.

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Casino Gambling and the Grand Strand

With another apparent demise of a gas tax bill in the SC Senate, the Grand Strand and casino gambling are again being talked about as a way to fund road maintenance around the state.

The desire for casino gambling has never left the minds of certain players along the Grand Strand.

In 2009, this group put its initial support behind Gresham Barrett in the governor’s race. Remember the $85,000 funneled to Barrett that was part of Coastal Kickback?

But Barrett lost to Nikki Haley and talk of casino gambling faded into the background.

Despite the fact that what we are hearing most about is another casino gambling bill being pushed by House Democratic leader Todd Rutherford, it only takes the signature of the governor on a compact with a Native American tribe to bring casino gambling into the state.

Neither the General Assembly nor local governments are part of the approval process, if this route is taken.

However, local governments would be important in the zoning and permitting processes and the General Assembly could be involved if gaming commission regulation was part of the compact deal and if the tax revenue is actually going to be dedicated to road funding.

A source within the local real estate industry told GSD last week that a land deal for a Grand Strand casino had been signed, but we have been unable to confirm with a second source to date.

Discussions between representatives of several tribes, potential developers and local and state elected officials are known to have been conducted several years ago.

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Road Maintenance Debate Could Affect Coast

An interesting debate on road maintenance funding appears to be forming in the SC General Assembly that could have ramifications for coastal Horry County.

Estimates in Columbia project the state needs over $1 billion annually of new revenue to fix and maintain the state’s crumbling road system.

A bill has been introduced to raise the gas tax by 10 cents over a period of five years, along with other fee increases on things like automobile registrations, automobile purchases and the like. That bill, if passed, is estimated to contribute approximately $600 million per year when fully implemented.

An increase in the gas tax gets the state about 50% toward its goal. How to get the rest of the way? Casino gambling at the coast with the tax and fee revenue generated going back to Columbia to fund road maintenance.

The desire for casino gambling has never left the minds of certain players along the Grand Strand.

In 2009, this group put its initial support behind Gresham Barrett in the governor’s race. Remember the $85,000 funneled to Barrett that was part of Coastal Kickback?

But Barrett lost to Nikki Haley and talk of casino gambling faded into the background. Now Haley is gone and new Gov. Henry McMaster is, reportedly, at least willing to listen to the arguments for signing a casino gambling bill if it passed by the General Assembly.

According to our sources, at five different local sites are being discussed for possible casinos: the old Myrtle Square Mall site, what is called the South Mixed Use District (part of the Municipal Improvement District being planned in Myrtle Beach), a site near the intersection of S.C. 22 and S.C. 31, a site on S.C. 9 and the former Hard Rock Park site.

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South Carolina’s Public Pension Problems

Six years after SC Treasurer Curtis Loftis began complaining about the poor performance of public pension investments under the SC Retirement Systems Investment Commission, legislators in Columbia have finally heard the message.

Fixing a seriously underfunded pension system has become a priority for this legislative year, The problem is you don’t fix an approximately $25 billion shortfall overnight.

When Loftis assumed the office of SC Treasurer, he became a statutory member of the investment commission. As a statutory member of the South Carolina Retirement System Investment Commission, Loftis criticized the high fees, low performance and lack of transparency associated with South Carolina’s public pension funds.

Almost immediately, the ‘good ole boy’ system in Columbia struck back. Loftis was subjected to allegations in 2011 that he and Mallory Factor were partners in what was called a “pay to play” scheme involving state retirement funds.

Despite the best efforts of members of the SC Retirement System Investment Commission, Gov. Nikki Haley, then state senator Greg Ryberg and others, Loftis was cleared of all allegations by SLED and the SC Attorney General’s office.

A couple of years later, Loftis was censured by the same SCRSIC he serves on for “false, deceitful and misleading rhetoric.”

At the time, Loftis said the commission members didn’t like him looking under rocks and asking questions about investments made by commission staff.

Things changed last spring when the CEO of the investment commission, Michael Hitchcock, told members of a Senate committee that the returns of the state pension fund have “underperformed” in recent years. He said the approximately $16 billion shortfall in the pension fund accounts has been aggravated in recent years by the gap between the assumed rate of return set by lawmakers (7.5%) and the actual rate of return (1.6%).

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Curtis M. Loftis Jr., South Carolina’s treasurer

Public Pension Fund Contribution Increase Approved

South Carolina government employees will be paying more into their public pension fund in the fiscal year beginning July 1, 2017.

This is a result of a 3-2 vote by members of the State Fiscal Accountability Authority to approve an increase of 0.5%, the maximum allowed by state law in any one year. Voting to approve the increase were Gov. Nikki Haley, Sen. Hugh Leatherman and Rep. Brian White.

S.C. Treasurer Curtis Loftis and Comptroller General Richard Eckstrom voted against the increase.

The increase will take employee contributions from their current 8.66% earnings to a new rate of 9.16%.

In addition, the state’s taxpayers will contribute more to government workers pensions. The current employer rate of 11.66% of an employee’s salary will increase to 12.16% for state and local governments and school districts.

The increased revenue for the pension fund will be little more than a finger in the dike of future liabilities. The total of 1% increase in contributions is estimated to bring in $100 million in new revenue for the Public Employees Benefit Association.

For the fiscal year completed June 30, 2016, the actuarial firm of Gabriel Roeder Smith and Co. estimated a shortfall of $1.4 billion in unfunded liabilities just for that fiscal year.

The overall future unfunded liability for the state employee pension fund is estimated at approximately $25 billion.

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