Commissioner takes aim at former ESC chief

COLUMBIA -- Commissioner Becky Richardson said that after feeling "muzzled," she wants to speak out about problems at the troubled Employment Security Commission.

Richardson e-mailed a five-page statement to The Post and Courier Tuesday evening that outlined her concerns at the agency while it was under former Executive Director Roosevelt "Ted" Halley's management.

"The director had total control: Whatever he wanted, whichever direction he wanted to go, whoever he wanted to promote, he did," Richardson wrote. "Qualified people were passed over and unqualified and incompetent people were put in place and protected and shielded from any consequences for their bad behavior, poor performance or mistakes."

Halley retired late last year and was replaced in the interim by Sam Foster. A message left at Halley's home Tuesday was not returned.

The Employment Security Commission is under fire for its performance during the recession, including erroneously issuing duplicate unemployment checks and not sending checks on time.

A review by the Legislative Audit Council released in January showed widespread mismanagement. Other troubles include the agency's failure to pay some state and federal income taxes last year and alert legislators about a law change that was needed to provide an additional five months of unemployment benefits to out-of-work residents.

Most glaring is the fact that the agency watched as the trust fund that pays out jobless benefits lost an $800 million surplus since 2000, leaving the state to borrow about $800 million to cut checks since late 2008.

The Legislature is working on a plan to overhaul the agency. The House passed its version last week and the Senate continues its debate. Meanwhile, the agency had more shake-ups Tuesday.

Two senior employees, Allen Larson and Jimmy Jones, each with about 35 years experience, left the agency, according to Clark Newsom, agency spokesman. Newsom declined to discuss the circumstances surrounding Larson's and Jones' departure. Efforts to reach Larson and Jones were unsuccessful Tuesday.

A woman answering the phone at Larson's home said he was given a choice to resign or be fired. She said Larson resigned. The woman, who did not identify herself, did not say why Larson was given the ultimatum. All she said was, "He covered for them long enough."

Larson, the agency's deputy executive director for unemployment insurance, earned $105,980 a year. Jones, assistant deputy executive director for unemployment insurance, made $85,208 annually.

The commission's general counsel, Bill Funderburk, replaced Larson, Newsom said. Funderburk's old post along with Jones' job are open, he said.

Richardson said she could not comment about Larson and Jones, upon legal advice.

She did say that she felt she was purposely kept in the dark about some problems at the agency because she vocally opposed Halley and disagreed with her two fellow commissioners, Billy McLeod and McKinley Washington.

Neither Washington nor McLeod could be reached for comment. "Our former director ran this agency as his own personal little 'kingdom,' " Richardson said. "The agency was 'ruled' by fear and intimidation and shamefully, this was allowed to happen."

She said she questioned Halley and presented constructive criticism, but in turn the animosity only grew for her, and decisions were made without her knowledge or input.

Likewise, Richardson said, the agency failed its capable and loyal employees. "I don't say any of this to absolve myself of the responsibility that was entrusted to me," she wrote. "I bring this to light because it (is) the right thing to do."

Costly layoffs

Employers who lay off workers frequently would see unemployment insurance costs soar under proposals that South Carolina legislators are considering.

The Lucas Group of Boston gave lawmakers recommendations on Tuesday for repaying more than $773 million in federal loans that keep the state's jobless benefits paid.

The consultants' recommendations to fill those holes involve asking the federal government for more time to begin repaying loans. But in the long run they suggest overhauling the premium system used to cover jobless benefits.

Under one proposal, 53 percent of the state's employers would see premiums fall or stay flat. But employers with the worst records for layoffs and firings would see costs rise from $88 to $645 a year for each worker.