Brief
California high‑speed rail board strips CEO of contracting authority amid expense scandal
Board members cited a damning audit that uncovered dubious travel reimbursements to consultants and the CEO’s household.
By Felo News Desk · Published
The California High‑Speed Rail Board voted 7‑2 on Oct. 9 to remove Chief Executive Ian Choudri’s sole authority to sign and manage contracts under $25 million, requiring in‑house attorneys to approve all new or existing contracts, according to the New York Post.
What happened
During a special board meeting, Chair Steve Kawa announced the decision, saying the board would not "ignore" issues affecting the organization. The vote followed an audit that identified more than $680,000 in questionable travel expenses paid to consultants linked to the project, including premium airline tickets, rideshare trips to gyms, nightclubs and an escape room.
What the reports add
The audit also revealed the rail authority paid roughly $2 million to four consulting firms for financial, legal and track‑design services, but many reimbursements were flagged as improper. Consultants allegedly billed for premium flight upgrades, prohibited international travel and rideshare trips to restaurants, a cigar lounge and Choudri’s home in Folsom.
What was said
Board member Lynn Schenk expressed outrage, stating, "I am outraged that we would be treated like a piggy bank for these kinds of expenditures." Choudri, when addressed by board members, said the agency "remains committed" and would "take full responsibility and accountability to fix if there was something broken in the system," adding that disciplinary actions were being taken, though he did not elaborate.
How it came about
The controversy follows earlier scrutiny of the high‑speed rail project, including a recent Felo News piece on Oct. 3 about Governor Gavin Newsom’s veto of a bill expanding the rail watchdog’s purchasing authority, and a Oct. 9 report on consultants billing Lyft rides to the CEO’s residence. Those earlier stories highlighted ongoing concerns about oversight and spending within the project.
Key facts
- The board voted 7‑2 to strip Ian Choudri of contracting authority (nypost.com)
- An audit found over $680,000 in dubious travel expenses paid to consultants (nypost.com)
- Consultants billed for premium flights, international travel, and rides to nightclubs and an escape room (nypost.com)
- Board Chair Steve Kawa said the meeting was to address issues rather than ignore them (nypost.com)
- Choudri pledged responsibility and mentioned disciplinary actions without detail (nypost.com)
Sources
- [1] nypost.com — originally reported as “CEO of California high-speed rail project loses contracting power in key vote as spending scandal grows”
