Governor: Unemployed Won’t be Punished for Agency’s Mismanagement

GOVERNOR TO CONTINUE AGGRESSIVE PUSH FOR ACCOUNTABILITY,
WILL ASK FOR FEDERAL LOAN IN MEANTIME

Columbia, S.C. - December 31, 2008 - Saying that he won’t allow the state’s unemployed to be punished for one agency’s utter disdain for accountability, Governor Mark Sanford announced today that he will continue aggressively pushing for transparency at the state Employment Security Commission (ESC) and will apply for a federal unemployment benefits loan.

The ESC has twice refused to sign a memorandum stating that they would cooperate with an independent audit, and that they would better share information with the state Department of Commerce - our state’s lead economic development agency. Despite their refusal to sign off on such modest accountability measures, the governor is proceeding with plans to force the ESC to deliver on the openness the state’s taxpayers deserve.

The Governor’s Office has been working with legislators to request an audit early next week, and was pleased to learn that another group of lawmakers requested one earlier today. More names are expected to be added to that request in coming days.

The Governor is also drafting a letter to the ESC Commissioners - all former legislators drawing a six-figure salary - demanding they provide the information he has requested under his Constitutional and statutory authority. The governor will specify a reasonable timeline for gathering the information. If they do not comply, the governor has the authority to remove the Commissioners, and will do so.

“It is unbelievable that any state agency would hold such outright contempt for taxpayers and the unemployed that they would refuse to sign a very simple request for audit compliance and sharing data they already collect,” Gov. Sanford said. “We will not punish the unemployed for this agency’s incompetence - but all working taxpayers need to realize that without reform, they will ultimately pay the price as the ESC has suggested doubling unemployment taxes from $300 million to $600 million a year. The agency has watched this fund run out over six years and has done nothing to prevent it. That, coupled with the fact that they’ve repeatedly tried to run from the sunlight an audit would bring tells us they have something to hide. If these Commissioners do not provide us with the information taxpayers are entitled to, they will answer for it with their jobs.”

The LAC has over 20 years experience in auditing state agencies, and has a long record of rooting out waste and abuse in state government. A report from the LAC two years ago led to sweeping changes at the state Department of Transportation (DOT), and a similar audit recently uncovered a litany of problems at the state Department of Disabilities and Special Needs (DDSN). The ESC had previously agreed to such an audit in meetings with the Governor’s Office and in media reports, before backing away from that commitment Monday. The data request the governor and the Department of Commerce have made is aimed at providing area-specific data about unemployment so that economic development efforts can be better targeted.

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Joel Sawyer
Communications Director
Office of Gov. Mark Sanford
(803) 734-5254 - work
(803) 446-6713 - cell
(803) 734-6447 - fax