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The Horry County Republican Party potentially faces thousands of dollars in fines for not filing financial disclosure forms with the State Ethics Commission over the last four years, but current and former party officials question whether they even needed to submit those records.

Last week, local party leaders said the commission had levied a $1,700 penalty against the organization. They said the commission warned the local leadership that failing to file the mandatory forms could result in up to $85,000 in penalties.聽That revelation has led to finger-pointing among the current leaders, who were selected in April and are accusing their predecessors of leaving them in this predicament. At least one of the former officials maintains that isn鈥檛 true.

鈥淗ere鈥檚 the thing about it: there鈥檚 no violation,鈥� said Dreama Perdue, one of the party鈥檚 former co-chairs. 鈥淚t鈥檚 a problem with the people who have taken over and tried to destroy the party.鈥�

Eric Santorelli, the county GOP鈥檚 treasurer, referred questions about the ethics fines to Roger Slagle, the local party chairman. Slagle could not be reached for comment.

Ethics officials have said little about the matter other than confirming that they sent a letter to the organization about the lack of disclosure forms.

鈥淭hey鈥檝e been amenable to getting those filed,鈥� said Meghan Walker, the commission鈥檚 executive director. 鈥淲e鈥檙e working with them now. It鈥檚 one of those things that happens from time to time.鈥�

It鈥檚 not unusual for the commission to notify politicians or organizations that they are late filing mandatory paperwork. The commission sends out thousands of those letters each year.

But the filings of political parties present an unusual challenge, one that the state Attorney General鈥檚 Office highlighted in a 2019 opinion issued in response to a letter from Walker.

The ethics commission鈥檚 executive director inquired about the constitutionality of enforcing the state ethics act鈥檚 provisions for political parties, particularly in light of a 2010 federal court case (South Carolina Citizens for Life. Inc. v. Krawcheck). In that case, the court found that the ethics act鈥檚 definition of a committee was unconstitutional because it was overly broad, affecting groups focused primarily on issue advocacy, not just those interested in electing candidates.

Politics

Horry County GOP says local party facing ethics fines

• By Jonathan Haynes jonathan.haynes@myhorrynews.com

Determining the decision鈥檚 impact on political parties has been difficult because those organizations are involved not only in getting candidates elected but also in promoting issues.

鈥淲e emphasize that political parties possess First Amendment rights of political expression, and free speech, just as others do,鈥� wrote Solicitor General Robert Cook.

So do South Carolina's political parties need to file any disclosures?

Yes, but only in certain cases, according to the attorney general鈥檚 office. Essentially, that office agreed with the ethics commission that there is a difference between a political party鈥檚 operating account and its campaign account. The operating account, which pays for day-to-day expenses such as utility bills, salaries and other expenses, requires disclosures to the commission; the campaign account does not.

But that鈥檚 just the opinion of one office鈥檚 counsel. The question hasn鈥檛 been settled by the courts or the state legislature. And another challenge is that some political parties combine their campaign and operating accounts into a single account. Does that account require disclosures? That鈥檚 another gray area.

As Cook noted in his response to the ethics commission鈥檚 executive director, 鈥淵our question is difficult with no clear answer.鈥澛�

Party infighting

After the county GOP received the ethics commission鈥檚 letter earlier this month, the accusations of mismanagement began.聽

鈥淎s we all know, we took a vote in our first meeting that we would go and do a financial audit聽on finances聽of our聽county聽party for the past three years,鈥� Slagle said during an emergency meeting last week. 鈥淣ow it looks like we鈥檙e looking for things in the past four years. So we probably will need to聽at least聽amend the scope of that audit. 鈥� Right now we can鈥檛 even do a disclosure because we don鈥檛 even have very good financial data.鈥澛�

Current party leaders also questioned whether they should have to file any disclosure forms.

State Executive Committeewoman Tracy Diaz said聽during last week鈥檚 meeting that the federal ruling 鈥渆nded State Ethics Commission reporting requirements for the state and local parties.鈥�

This issue has been further muddied by the bitter history between Perdue and her former co-chair Ed Carey.

Carey, who held the co-chair post from March 15, 2019, until April 24, said his former co-chair Perdue never shared any correspondence from the ethics commission with him.

In a June 17 statement to the local party, Carey wrote that he was unaware of any late filings until recently. He wrote that the commission鈥檚 letter was mailed to a P.O. Box that Perdue controlled, not him.

鈥淚t is unfortunate that the HCGOP of today is holding responsibility for the incompetence and negligence of the former Chairwoman Dreama Perdue,鈥� he wrote.

Carey described running for chairman in 2019 鈥渂ecause of the lack of transparency,鈥� he wrote, specifically blaming Perdue. He wrote that he sought financial records from Perdue, though few were provided.

Carey also noted that the party鈥檚 handbook cites the 2010 court case ending the reporting requirement for state and local parties. He said he was told by the state party that聽ethics commission filings were not required. Yet he said the same handbook stipulates that the party must maintain records of contributions and expenditures for four years.

鈥淎s the elected Co-Chairman, I spend my entire term fighting to get these records,鈥� he wrote.

He said Perdue refused to work with him.

鈥淓ssentially for the two years of my tenure in office Ms. Perdue steadfastly refused to respond to repeated formal and informal requests for what must be universally considered the most basic, fundamental materials necessary and required by law and tradition to operate the HCGOP or any a (sic) legitimate organization,鈥� he wrote.聽

In an interview with MyHorry糖心vlog官方入口, Perdue said the party had not filed any disclosures with the ethics commission in many years and this was an issue for the S.C. Republican Party.

Perdue also criticized the existing leadership for its management of the organization.

鈥淭he people that are running the party right now, who were elected at the convention, they have no idea what they鈥檙e doing but they鈥檙e trying to cause problems for the party,鈥� she said. 鈥淭hey鈥檙e just kind of grabbing at straws.鈥�

A spokesperson for the state GOP declined to comment on the county party's potential ethics fines.