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Audit Charges Mismanagement in Employment Security Commission

January 26, 2010

FOR IMMEDIATE RELEASE

Breaking News

Audit Charges Mismanagement in Employment Security Commission

January 26, 2010 – Columbia, S.C. – The Legislative Audit Council, which conducts performance-based reviews for the South Carolina General Assembly, this morning released a scathing investigation detailing mismanagement by the Employment Security Commission.

The Nerve was the first news organization in the state to release a comprehensive report on the Legislative Audit Council’s findings on the ESC. For the complete story, visit The Nerve.

The Nerve reports that:

  • ESC has taken the fund from $782.2 million in reserves in 2000 to a staggering $723.7 million in debt to the federal government for jobless benefits.
  • ESC did not follow (U.S.) Department of Labor (DOL) guidance regarding minimum reserves. Had the ESC done so, the unemployment fund “would still have a significant surplus.”
  • Employees who were terminated for misconduct, illegal acts or other offenses have been paid more than $171 million in state unemployment benefits during the last three fiscal years.

The council report charges the commission with a decade of mismanagement, including a failure to manage the unemployment fund according to state and federal laws and regulations. While commissioners were squandering the funds reserves, the agency continued to pay unemployment benefits to people who had been fired for cause, the report found.

Other stories today on The Nerve include:

  • Immense tuition increases and the stock market meltdown have conspired to put the South Carolina Tuition Prepayment Program in serious financial trouble. Absent remedial action the program is “projected to run out of assets in fiscal year 2017.”

Robert Appel

Director of Communications

South Carolina Policy Council

803-779-5022 Ext. 118

803-779-4953 (fax)

robert@scpolicycouncil.com

www.scpolicycouncil.com

www.thenerve.org

www.unleashingcapitalismsc.org

Limited Government • Free Enterprise • Individual Liberty

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