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Scandal Engulfs S.C. Hospitality Assoc.

COLUMBIA, S.C.

Hundreds of thousands of dollars are missing from the S.C. Hospitality Association, and the prominent executive and lobbyist who built the organization from scratch was buried Friday, after apparently taking his own life. Meanwhile, another employee of the association has been named a person of interest in a federal probe into the missing money.

Now, the organization that represents South Carolina's $14 billion-a-year tourism industry must rebuild its credibility with its 2,000 members—including luxury resorts—lawmakers and the public. To do so, experts say, it must be painstakingly honest about its mistakes and open about its finances.

Rick Erwin, a Greenville restaurateur who has taken the helm of the association, has ordered a comprehensive outside audit of the association's finances. He plans to urge members to adopt regular audits as a matter of policy. "Maybe even in the bylaws," he said, and "not leave it up to any individual to make that decision."

The board will consider a number of additional options for going forward, including a restructuring of its current set-up; holding annual meetings, which is not currently done, and providing more transparency.

Courtesy of The State, Columbia, S.C.