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California High-Speed Rail Consultants Flew First-Class, Visited Bars and a Nightclub on Taxpayers’ Money
The inspector general said the authority violated state and contract rules and will seek reimbursement from four consulting firms.
On Tuesday, an independent inspector general report revealed the California High-Speed Rail Authority reimbursed nearly $600,000 in wasteful travel expenses to consultants, including trips to gyms and nightclubs, violating state rules and contract requirements.
Between June 2024 and April 2026, the authority paid more than $2 million in travel costs for four consulting firms, including KPMG, Nossaman LLP, AECOM-Flour Joint Venture, and SYSTRA/TYPSA Joint Venture, often failing to vet necessity or enforce contract terms.
Questionable spending included $118,000 in barred international travel, while CEO Ian Choudri allegedly directed staff to approve requests without justification, including luxury rides to nightclubs and gyms per the report.
Authority officials agreed to strengthen internal controls and recover improper costs by March 2027, though Assembly GOP Leader Alexandra Macedo called the findings evidence of wasteful spending.
Lawmakers approved Assembly Bill 1608 to strengthen inspector general oversight, as the agency faces scrutiny regarding financial management and its ability to complete planned rail segments by 2027.