The Swansea Town Council’s fight over finances has now turned into a legal battle.

After repeated concerns were raised about a recent town audit for the 2021 fiscal year that found $3.3 million in assets unaccounted for, two council members have decided to bring legal action to get some answers.

They are suing their own mayor and town clerk.

Council Members Mike Luongo and Doris Simmons have filed a lawsuit against Mayor Viola McDaniel, Clerk/Treasurer Margaret Harvey and Auditor John Brown.

In a letter dated Aug. 10, 2022, written by Attorney Jake Moore, Mayor McDaniel was informed that the audit was to have been presented to the town council  in April of this year, but the presentation was “stopped for reasons unknown.”

“If $3 million is in fact missing, we believe the town has a duty to get to the bottom of where the money went,” Moore said in the letter. “The citizens of the town are at least entitled to an explanation as to the missing funds.”

Simmons and Luongo have repeatedly asked that the auditor make a presentation to the council explaining the shortfall, but have failed to get the support of the mayor and two other council members to put the matter on the agenda.

McDaniel did not respond to the Chronicle’s requests for comment.

Simmons told the Chronicle that the mayor looks at the problem as something in the past.

“She won’t go back,” Simmons said.

Luongo said the audit raises questions that need answers.

“We need to find out what’s missing,” he said.

Luongo said he couldn’t speculate on whether town officials are engaged in something illegal, but questions have to be asked.

Council held a meeting Aug. 15 to give second reading to a $1.7 million budget for the 2022-23 fiscal year, but Luongo made a motion to delay the second reading until the members could get information from the auditor about the missing money. The motion passed 3-2.

Though Simmons and Luongo often fail to get the third vote necessary to pass their motions, Council Member Linda Butler voted with them, but only after attempting to recuse herself from the vote. When informed she had to vote unless there were disqualifying circumstances, she agreed to vote yes on the motion.

McDaniel was extremely upset about the vote and immediately called for adjournment, according to Simmons.

Luongo indicated to the Chronicle that council would next meet about the budget Aug. 22.

In his initial report to council, CPA John Brown cited several problems with the finance information that he was provided, asserting that it was impossible to provide an accurate audit.

Money problems were also under scrutiny when former Swansea Mayor Jerald Sanders was indicted by a state grand jury in July of last year, accused of taking public money and transferring it to an account that he managed. The Lexington County Grand Jury indicted Sanders on charges of embezzlement of public funds. He was subsequently suspended from office by Gov. Henry McMaster.

That case has not yet gone to trial.