California rail authority board tightens CEO's contracting powers after travel expense audit
The California High-Speed Rail Authority's board voted 7-2 to require its own attorneys to review new and existing contracts and to remove CEO Ian Choudri's sole authority over contracts below $25 million. The action followed a state inspector general investigation that found consultants billed about $600,000 for improper travel, including first-class flights, luxury rides, and visits to nightclubs and cigar lounges. Some board members said the findings suggested broader spending problems and discussed whether to terminate the consulting firms' contracts.
The authority’s board acted after the inspector general examined two years of travel claims from four consulting firms and found about $600,000 in questionable expenses. Many trips lacked authorization or clear justification, and some were requested by senior officials. Staff sometimes approved expenses without adequate review or learned of trips only when invoices arrived.
The board’s 7-2 vote removes CEO Ian Choudri’s unilateral handling of contracts below $25 million and adds in-house legal review for new and existing agreements. The agency has paused travel reimbursements to the firms, is reviewing claims, and is training personnel. Board members Lynn Schenk and Henry Perea sought deeper scrutiny or possible contract termination.
The tightened oversight may affect how high-speed rail contractors bill taxpayers and how quickly the project moves. Taxpayers could gain stronger safeguards against questionable spending, while consultants may face closer legal review and slower approvals. If contract terminations proceed, project timelines and costs could shift. The episode may also shape public trust in state infrastructure oversight, though the board’s action alone may not resolve broader accountability concerns.