South Carolina mulls mystery $1.8bn in account: ‘We don’t know why it’s there’

To put it mildly, the South Carolina state government faces an unusual problem: what to do about $1.8bn found in a state bank account when no one knows how it got there, how it should be spent or even whether it really exists.

Discussing the problem, the Republican governor, Henry McMaster, made a play for political understatement of the year.

“There’s something wrong somewhere,” McMaster told reporters, adding: “We don’t know why it’s there, what it’s supposed to be used for, how long it’s been there – that’s a problem.”

Last year, the state comptroller resigned after the discovery of a 10-year, $3.5bn accounting error. State lawmakers say the $1.8bn sum could be related to that scandal, the New York Times reported. Or it may not be. No one knows.

Working out the truth is not proving easy, particularly because the new comptroller, Brian Gaines, a Democrat, is fighting with the state treasurer, Curtis Loftis Jr, a Republican, over where the $1.8bn came from and what to do about it.