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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, California's independent inspector general released a report finding the High-Speed Rail Authority reimbursed nearly $600,000 in wasteful consultant travel expenses, including trips to gyms, nightclubs, and escape rooms that violated 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—KPMG, Nossaman LLP, AECOM-Flour Joint Venture, and SYSTRA/TYPSA Joint Venture—often failing to sufficiently vet requests or enforce contract terms.
Questionable spending included $118,000 in barred international travel, while CEO Ian Choudri allegedly directed staff to approve travel requests without justification, including premium rideshare rides to nightclubs and Planet Fitness gyms.
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 and unallowable" spending.
Lawmakers approved Assembly Bill 1608 this year to strengthen inspector general oversight, as the agency faces broader scrutiny regarding its financial management and ability to complete the planned rail segment by 2027.