In case you’ve been living under a rock for the past 36 hours, Palmetto Public Record reported yesterday afternoon that three independent sources told us South Carolina Gov. Nikki Haley could soon be indicted by the U.S. Department of Justice. As part of our reporting of the statements, we shared all the documents we could find connected to an investigation by the Internal Revenue Service into the finances of a Sikh temple run by Gov. Haley’s father.
We released the 2011 IRS letter informing temple officials that federal investigators intended to look into the group’s financial dealings, requesting documents and scheduling a meeting at the temple last spring. We also posted evidence that the group openly supported Haley’s 2010 campaign for governor, which would have been a violation of its tax-exempt status as a religious nonprofit.
Yesterday afternoon, we told you about five lawsuits filed against the temple by contractors alleging they’d been stiffed out of nearly $130,000 in the construction of a new temple that still hasn’t been built. The temple was supposed to be paid for by a $750,000 loan (taken out with the help of a bank president later rewarded by the governor with a political appointment), leaving us with one underlying question: what happened to the money?
Gov. Haley took to Facebook late last night to accuse us of lying, even though everything we posted was either public record or reliably-obtained documents — none of which have been challenged as untrue — or chatter which anyone even reasonably connected to this notoriously corrupt state will tell you is widespread among South Carolina’s political class.
Late Friday afternoon, the governor’s office released a letter from Eric Hall of the IRS’ legislative affairs office stating that the agency closed its inquiry last fall after finding nothing meriting further investigation (a hat tip to Stephen Largen of the Post & Courier for making it public, and we gladly would have printed it earlier if the governor’s office sent it to us).
We would like to note that dozens of reporters and observers have parsed — many incorrectly — our words regarding what Palmetto Public Record heard and wrote about a possible indictment. Given the furor which gripped many who followed our story, everyone from close friends to national reporters have been asking for comment, so here it is:
We’re glad the IRS stated today that they apparently found nothing untoward regarding the temple’s finances, and we’re glad (as Haley spokesman Rob Godfrey says) the lengthy chapter regarding Gov. Haley’s involvement seems to be closed. Since no normal person would have been able to get the IRS to send them such a letter within a day of these questions hitting the blogosphere, and since the IRS certainly didn’t answer our phone calls, the only way to get an answer to our questions was by taking them to the public.
The IRS said yesterday they wouldn’t comment on any possible investigations, and then said they couldn’t discuss it with anyone not directly tied to the investigation. For a person who told ABC News there was never any investigation to begin with, the IRS certainly sent Gov. Haley’s chief of staff a letter quickly regarding a situation from which she claims to be so distant.
Nevertheless, today’s letter should have been a refreshingly transparent development — certainly a change from how Gov. Haley’s office has conducted business in the past. We welcome the transparency of the governor’s office sharing her correspondence, and hope that the release of this IRS letter is an indicator that the Gov. Haley will open up other ethics investigations to public scrutiny.
As journalists, all we can do is ask questions, and tell you what we see and hear. We’re glad the latest IRS letter answers some of our questions, but it definitely doesn’t answer all of them — and it may create a few more once the chips are finished falling. Until these questions (and many other outstanding ethics questions regarding the way the governor’s office operates) are answered, you can bet we’ll continue to ask them.






The IRS letter Haley has is for the tax year 2009. What about the other tax years? I don’t believe this is the end of this matter. Keep digging.
Logan lied. Sickening. IRS letter was not about an investigation. The IRS has come out about it:
http://abcnews.go.com/blogs/politics/2012/03/no-irs-investigation-into-sc-governor-nikki-haley/
When will progressives start being honest?
Please cite an actual quote that is an intentional misrepresentation of the truth? I believe everything he said is strictly true. As he said, he did not have the exoneration letter, despite efforts to obtain it.
He intentionally published a false story, He deserves to be sued.
The legal threshold for defamation is simply any accusation that causes harm. The whole blog is thus defamation. The document information provided was falsified, opening him up for liable. The IRS does not have a document with that designation. THAT is a deliberate misrepresentation of the truth: suggesting you have documentation of a form that does not exist to imply the existence of an investigation that did not take place. I am in an NGO, non-profit corporation. I know the form letter requesting documents, I provide the documentation, no investigation happens.
You ask what which quote was intentional misrepresentation of the truth is one of those usual journalistic slieght of hand protestations. Mr. Smith has the cover he was reporting what 3 people told him so he can claim no intentinal malfeasuance on his part. But the fact is Mr. Smith claims to be a journalist but none of his reporting on this would meet any standards in Journalism 101. He did not verify anything and that was intentional.
I wonder, now that he has pot full of egg on his face, will be admitting his sources were bad and he got hoodwinked
I must say this was an interesting “report.” Yet, had Logan Smith taken additional steps to confirm this “investigation” he would have learned of the outcome of the IRS examination. The truth does not lie ONLY in what one says, but what one chooses to OMIT. This is a very good example of what “incomplete” and/or “incompetent” journalism/blogging creates in order to “cook up a pot” of sensationalism in order to mislead the public for one’s own fame and financial agendas. Maybe if our citizenry would confront such decisive behavior exhibited like said works by Mr. Smith with a MORE OPEN-MINDED AND UNBIASED attitude, maybe one would not be so easily drawn into a quagmire of political sabotage.
And you were very willing to believe he would not lie to you and the public regarding his inability to obtain all the info regarding this so-called story. Maybe he should have used a little more effort under the FOIA. I’m positive he knows what that is. Documents are not so difficult to obtain, when done with due diligence.
I believe Logan Smith. Haley lies and distorts the truth.
Haley is a pathological liar. She lied about her daughter winning first place in a beauty pageant. Her daughter won second place.
THAT is the best you can come up with? You people are pathetic, and you are a pathological jackass.
HA HA HA HA HA HA HA HA HA…. You got punked.
I’d sooner believe chicken little that the sky is falling than trusting ANYTHING that gets posted here.
Your name is MUD..
Witch hunt, plain and simple……………
when you decide to go fishing,……first buy a boat.
It’s too bad it took a media firestorm to get the Governor’s Office to open up and produce basic information. Good for you for having the guts to go with your sources and force their hand.
You really should have either named the sources or sat on the story until you knew an indictment was coming… and not just because someone said so. Trust me, there is a lot of innuendo that bounces around that capitol and “investigation” does not always equal “wrongdoing.”
While I criticize you a lot, you do report some good things. You just need to learn how to play the game and realize, if you’re wrong, that it will ruin your credibility forever.
His credibility is shot and he potentially stands to lose a lot more than that if this goes to court,
I’ll bet you’re just happy as a clam that AlGore fired Olbermann today. Now NOBODY will pay you anymind.
Takes the pressure off of the stupid.
“As journalists, all we can do is ask questions”
As if a “journalist” is something special anymore. To many in America it means just a partisan hack that solely supports the liberal agenda. You’re not asking “questions”, you’re making poorly sourced allegations trying to destroy someone that you disagree with. You just lost any credibility you had left.
Russ
guess what? form 4564 doesn’t exist. you published a forged document. hope you get sued.
http://www.irs.gov/app/picklist/list/formsPublications.html?indexOfFirstRow=1150&sortColumn=sortOrder&value=&criteria=&resultsPerPage=25&isDescending=false
Please explain this form then: http://www.irs.gov/pub/irs-utl/form4564.pdf
oops… must be an internal form, rather than a taxpayer-used form.
Why don’t you talk to a real “Journalist” and answer their questions of you?
The DC was calling you but you didn’t return their calls. What’s up with that?
How does it feel to be exposed as the miserable partisan hack that you are?
I am wondering if you had tried to obtain further information regarding whether or not an investigation was completed and what the findings were. Because if that were the case, you can at least claim that Haley tried to cover up something by not releasing records pertaining to the investigation. Or did you just stop with this IRS letter? The 2011 fall IRS letter, I assume, pertains to the 2009 tax year, but I don’t know that for certain, I have not seen the entire letter. I would appreciate if you could address this issue. Thank you.
http://abcnews.go.com/blogs/politics/2012/03/no-irs-investigation-into-sc-governor-nikki-haley/
You are on record for perpetrating a fraud, defamation of character and you are liable for damages if she chooses to deal with this. Repressive progressive is all you are. Pathetic! You should be ashamed of yourself. Ruined your blog, totally discredited. You undermine all you want to stand for when you lie in your blog.
Firstly, the IRS inquiry was a routine random audit. The IRS letter that you published was standard boiler-plate language. I get one of these about every three years or so. The IRS sends a canned-format letter requesting documents; I provide the documents; the IRS says ‘thank you’ and the matter is closed. All very routine.
Secondly, the IRS would not comment because – pay attention now because this is important – THEY ARE FORBIDDEN TO BY LAW. Tax returns and information about individuals are held in confidence – by law. Are you telling us that you did not know this?
Thirdly, temple construction is not political advocacy.
Fourthly, it is not unusual for bulletins and mailers from religious institutions to contain thanks for the congregants’ help and support. Members support each other; that’s one of the things that religious institutions do – and they do it voluntarily (unlike so-called ‘progressive’ organizations, who need to have a law passed before they will do anything).
Fifthly,…just what on earth do they teach in Journalism? And you are tagged as a ‘good student’? ::::::
Dirty politics from the same people who manufactured stories of Haley’s fictional ‘affairs’ back during the election. Another Will Folks Fail.
At least Republican women are attractive enough to be able to make a story believable to the pathetic and the stupid. Could anybody believe a story about an affair involving Nancy or any other female Democratic office holder????
Ick. I’m off to the shower.
A domain name and crappy investigative skills does not a respected blogger make. Go back to your day job and leave the journalism to the adults.
Partisan hack. I hope your balls get strung up in litigation forever over this. Credibility??? Perhaps Gov Haley will pour down heat on you and your minions, only like govt can.
Logan Smith caught red handed in a blatant lie. Gee, I’m shocked,what a big surprise, gasp, gasp.
“As journalists, all we can do is ask questions, and tell you what we see and hear.”
As journalists (our creds tell us so!) all we can do is ask (selective) questions, and (artfully) tell you (what to think about) what we see (sitting behind a computer screen) and hear (after NBC has edited it for us).
FIFY.
As far as your actions against the governor is concerned they are blatantly a total lie n fabrication . Typical liberal politics spread lies and untruths to get your point across. Any headlines you liberals can muster together is how you do business . Just like your great leader Obama the biggest liar in the democratic party the guy who is ineligible to even be President . The truth will finally come out in the end and then we can deport all of you listing liberals
Listen to all the wailing and gnashing of teeth by the Haleyites. How dare Mr. Smith question the infallible and all benevolent Queen of SC. I wish all of the Haleyite hacks would comment on the governor’s other ethical discretion e.g. the Wilbur Smith affair or the six figure salary from Lexington Medical for doing nothing. I don’t know how any of you can defend this woman. So what if Logan got it wrong this time she still has a rap sheet a mile long.
While I breathe, I hope this governor is gone soon, very soon.
Anyone can make an accusation, and that’s all that the correspondence reflects–that someone made accusations to the IRS that they had to follow up on. Where the Record went astray was in giving far too much weight to the correspondence. The fact is that major figures in both parties wanted to derail the political career of Gov. Haley. Who was trying to savage her with behind-the-back allegations? Now THAT, not the IRS trying to find out whether the allegations were true, which they obviously weren’t, would be a story. Unfortunately, that requires real investigative reporting which won’t be forthcoming on these pages.
As far as the quick IRS response, it is obviously necessary in the case of a public figure. You threw misleading information out into the public and the record had to be cleared. That the IRS under a Democratic administration moved so quickly to set the record straight on sleazy allegations against a Republican governor is to its credit.
You should have been suspicious immediately about these allegations. Look when they were made–it was when it became clear she would be running for governor. Both her primary opponent and her general election opponent tried to throw mud at her. Evidently the theory was that if you throw enough mud it sticks, and someone thought it might be a good idea to tell the IRS that there were irregularities connected to her.
Your grudging retraction does you no credit. Tell the truth: you thought there was a juicy story about a politician you dislike, you splashed it all over the place, and there was no there there.
Many bloggers are journalists. Your conduct in this case says you are not one of them. You cheapen and bring shame to the concept of journalist — a calling to which I aspired to qualify for 42 years. Byron Calame
Methinks they done protested too much . . . .