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

The commission faced accusations of potential malfeasance, allegations leveled by State Treasurer Curtis Loftis, who is also a commission member. The commission — referred to in court documents as the RSIC — handles $27.3 billion in investments for the retirement 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 external money managers;
• inadequate controls for alternative investment fees;
• flawed investment contract approval processes,
• restriction of information provided to the state treasurer.

Inspector General Patrick Maley found merit only with accusations 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 include confidential information” to Loftis and his staff.

It seems the crux of the problem was communication and infighting, according to Maley’s report, noting the charges stemmed from internal dysfunction that threatens to overshadow the myriad financial issues facing the commission.