The South Carolina Retirement System Investment Commission wasdetermined to have shown “no criminal conduct or wrongdoing” afteran investigation by the state’s Inspector General.

The commission faced accusations of potential malfeasance,allegations leveled by State Treasurer Curtis Loftis, who is also acommission member. The commission — referred to in court documentsas the RSIC — handles $27.3 billion in investments for theretirement system. The case was divided into six categories:

• Misstatement of management fees in financial statements;
• false representation of investment valuations;
• inappropriate employee travel or perks received from externalmoney managers;
• inadequate controls for alternative investment fees;
• flawed investment contract approval processes,
• restriction of information provided to the statetreasurer.

Inspector General Patrick Maley found merit only withaccusations of restriction of information to the state treasurer.In his written report, Maley recommended the investment council“provide complete access to all RSIC records, to includeconfidential information” to Loftis and his staff.

It seems the crux of the problem was communication andinfighting, according to Maley’s report, noting the charges stemmedfrom internal dysfunction that threatens to overshadow the myriadfinancial issues facing the commission.

“The rhetoric, unhealthy criticism, fault-finding tendencies anda pattern of personal slights must end and the parties need tosolve problems, big and small, while face-to-face in the same roomand not through e-mail or the media,” Maley said in his report.

Loftis was “pleased that my effort to bring transparency andaccountability to the pension fund over the last two years isyielding results,” he said in a written release following theruling. “This report should correct any misplaced notion that theinvestment commission has about withholding information from afiduciary.

The South Carolina Retirement System Investment Commission hadnot released an official response. However, in comments toreporters, CEO Darry Oliver said his organization was working withthe South Carolina Budget and Control Board in developing a newsystem of information sharing and communication.