What is Exotica International? Report claims Nikki Haley's family biz was hit with multiple liens while she was CFO
LEXINGTON, SOUTH CAROLINA: Exotica International, Inc, a business belonging to Nikki Haley's family where she looked after accounting and served as the chief financial officer, was hit with three liens over seven years for not paying taxes to the state of South Carolina, a 2010 Associated Press report claimed.
The report also alleged that the business faced a fourth lien which was reportedly filed "in error," a phrase state officials failed to explain at the time.
Despite the questionable background, Haley has continued to promote the signature line "It’s time for an accountant in the White House" during her political campaigns as well as media appearances, including at the first Republican presidential debate held last month.
"So you tell me, who are the big spenders?" the former South Carolina governor reportedly asked during the debate, as per the Daily Beast.
"I think it’s time for an accountant in the White House," she reiterated while speaking against excessive government spending she saw during both Joe Biden and Donald Trump's administrations.
An overview of Nikki Haley's family business, Exotica International
Exotica International was a high-end clothing store and fashion boutique located in Lexington County, South Carolina, belonging to Haley's family. She reportedly promoted herself as the accountant of the business when she was elected to the South Carolina State House in 2004.
The business was shuttered on May 31, 2008, after nearly 32 years of operation, as per a press release issued at the time of it's closure. The notice mentioned that the company was owned and founded by Dr Ajit S and Mrs Raj K Randhawa.
Raj reportedly came from India with a Law Degree from Delhi University, earned her Masters in Education and taught in the Bamberg public school system for seven years. She moved to South Carolina with Ajit in 1969 after he earned his Ph.D from the University of British Columbia.
Ajit joined Voorhees College as the professor of Biology and taught for 29 years before retiring as Chairman of the Division of Natural Sciences, Math and Computer Sciences in 1998.
Meanwhile, Raj started Exotica International, Inc in 1976, as a "unique gift boutique, housing a selection from many countries around the world," the press release noted.
Apparel was added to the company after it's first expansion in 1980. The business also relocated in Columbia to a beautiful 10,000 square foot facility on Highway 378 after two previous expansions.
View this post on Instagram
Exotica International was quick to gain prominence as a "must shop" business and attracted customers from as far away as California.
It was reportedly celebrated for its over-the-top commitment to clients and was known for unique styles and beautifully tailored quality attire to its clients.
Exotica also contributed to many organizations and communities in times of need, providing financial support for medical research of cancer and HIV/AIDS and offering help during tragedies like 9/11 and Hurricane Hugo.
The Randhawas also earned numerous awards and accolades for their successful business venture and their community service. Raj even came runnerup for the 2002 SC Business Woman of the year while Dr Ajit earned the Governor’s Distinguished Professor Award from Governor Carroll Campbell.
At least three generations of the Randhawa family worked at Exotica International. While Haley served as the CFO and accountant of the business, her husband, Michael, was the manager of men's wear.
Exotica International reportedly closed it's doors after Ajit and Raj decided to retire following a successful three-decade run in the fashion industry.
The tax troubles of Exotica International
Nearly two years after Exotica International's closure, a 2010 report by the Associated Press claimed that the company was allegedly hit with three liens for not paying taxes to the state.
The business reportedly faced two liens for not paying taxes on business income and one for failing to send the state the tax money that the company withheld from employee paychecks.
As per the Associated Press, the taxes were at least 19 months overdue in all three liens. The report also stated Exotica International allegedly paid a total of $4,000 to satisfy the liens, including financial penalties.
Back in 2009, Haley touted the work she invested into her accounting job while simultaneously serving as state representative. "The good thing about accounting, payroll, and taxes is that you don’t have to work during normal business hours," she told Who’s On The Move at the time.
"When the legislature is in session, you may see me there early in the morning or late at night, but the work always gets done," the former UN Ambassador bragged.
However, the Associated Press noted that Exotica International "frequently pays operating bills more than a month late, compared with an industry average of 10 days late."
While the South Carolina Department of Revenue website does not host public lien information older than six years, Exotica International allegedly received another lien in 2012, while Haley served as the governor of South Carolina, for failing to pay $692.38 in withholding taxes, the Daily Beast reported citing a document hosted by FITS News.
View this post on Instagram
Nikki Haley faced personal financial issues in the past
In addition to her family business, Haley has herself faced intense scrutiny about her personal income over the years.
In 2010, The State reported that the former governor allegedly neglected to file her personal taxes on time and racked up more than $4,000 in penalties for missing multiple annual deadlines in the mid-2000s.
As per the Daily Beast, Haley was also accused of allegedly withholding financial information from voters while holding office.
While serving as a state representative between 2007 and 2009, Haley allegedly earned $42,500 from a company with one of the state government’s largest engineering contractors.
At the time, several outlets reported that executives from the firm claimed Haley was not hired for her business skills but the network she created in the legislature.
She was "a connected person who had access to a lot of folks and information," an executive told CNN in 2010.
"She is a well-connected person who knows different things and different people, and that’s why we hired her, and I’m going to leave it at that," Robert Ferrell, who hired Haley, told The Nation in 2011.
While neither the company nor Haley disclosed her role on the job, the latter drew accusations of hypocrisy as an advocate of greater public transparency.
In 2011, The State also reported an alleged $100,000 discrepancy between Haley’s federally reported income in 2008 ($22,000) and the earnings listed on a hospital job application ($125,000) that same year.
According to the Daily Beast, Haley eventually disclosed her tax returns revealing that her household income had tripled during her five years in the state legislature.
Haley and her husband reportedly earned a combined $65,704 in 2004. They were reportedly making around $196,282 by 2009, the majority of it from Haley’s hospital fundraising salary.
The former South Carolina governor's press secretary Ken Farnaso spoke to the Daily Beast and dismissed the report as covering old and previously resolved matters.
"These are old claims answered long ago and re-upped by liberal hacks because Nikki is surging. Democrats know Nikki Haley is Biden’s biggest threat, and they’re terrified," Farnaso told the publication.