California's beleaguered high-speed rail project is looking more like a gravy train after a watchdog claimed almost $600k of taxpayer cash was misspent.
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600k → look → cash
The state's independent Inspector General claimed in a report released this week that public funds were used inappropriately to pay for consultants to travel to a tiki bar, a cigar lounge, a nightclub and an escape room.
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consultants → claim → bar
The alleged spending spree emerged as frustrations grow over delays to the infrastructure project, which was originally envisioned as a bullet train connecting Los Angeles and San Francisco.
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which → emerge → Angeles
The Inspector General said the California High-Speed Rail Authority violated state rules and contractual requirements when reimbursing four consulting firms.
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Authority → say → firms
The firms - KPMG, Nossaman LLP, AECOM-Fluor Joint Venture and SYSTRA/TYPSA Joint Venture - received more than $2 million in travel-related reimbursements between June 2024 and April 2026, according to the report.
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firms → receive → report
Inspectors found $81,000 was not allowable under state travel rules and another $543,400 was not allowable under the firms’ contracts.
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543,400 → find → contracts
A further $680,500 in reimbursed expenses had not received advance approval from the authority.
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680,500 → reimburse → authority
Consultants claimed premium Uber and Lyft rides to gyms, nightclubs, an escape room, a cigar lounge in Washington DC, and a sushi restaurant in Denver, the report said.
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report → claim → Denver
One luxury rideshare covering just one mile through downtown Sacramento cost taxpayers almost $40, the Inspector General found.
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General → cover → 40
A KPMG consultant used Uber Comfort for a journey from his home to the airport, from the airport to the High-Speed Rail Authority’s office and then from the office to a steakhouse in Folsom more than 25 miles away, it was claimed in the report.
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it → use → report
California taxpayers picked up the bill for a string of questionable travel expenses by consultants working on the state’s long-delayed high-speed rail project, according to the IG report
A report by the California High-Speed Rail Authority’s independent Inspector General found roughly $600,000 in consultant travel spending that was either wasteful or not permitted under state rules or contracts
Travel was often vaguely documented and lacked justification, the report said, with cited reasons allegedly including 'meetings with HSR executives,' 'project management,' and 'typical trip.'
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report → pick → executives
The report also identified first-class and premium airfares for which the required documentation was missing.
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documentation → identify → which
More than $118,000 in international travel-related expenses were reimbursed to SYSTRA/TYPSA, despite its contract specifically prohibiting international travel costs from being authorized.
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118,000 → relate → costs
The report said contract managers also routinely failed to demonstrate that travel was necessary, economical, contractually permitted and compliant with state rules.
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travel → say → rules
It claimed that in some cases, managers did not question costs or require basic supporting documentation such as receipts.
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managers → claim → receipts
And the Inspector General's report indicated that it had found that some consultants regarded requests from the authority’s top leadership as something they could not challenge.
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they → indicate → something
In emails, the legal services contract manager stated the consultant travel needed written justification and advance approval.
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travel → state → justification
The consultant pushed back, saying it wasn’t his job to justify in-person meetings at CEO Ian Choudri’s request, and that other consultants were 'learning the hard way' not to question Choudri, according to the report.
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consultants → push → report
That finding was particularly significant because the Inspector General noted that Choudri does not have the authority to override requirements contained in the authority’s contracts.
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Choudri → note → contracts
The beleaguered rail project, which was initially conceived to run between Los Angeles and San Francisco, has faced years of delays and rising costs
Ian Choudri, CEO of California High-Speed Rail Authority, was arrested earlier this year on suspicion of domestic battery.
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Choudri → conceive → battery
The authority said at the time that he was 'not aware of any evidence of wrongdoing'.
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he → say → wrongdoing
No charges were ultimately brought against him
Choudri has himself faced scrutiny this year.
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Choudri → bring → scrutiny
He took a voluntary leave of absence in February after being arrested at his Folsom home on suspicion of domestic battery against his spouse.
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He → take → spouse
At the time the rail authority board said '[Choudri] is not aware of any evidence of wrongdoing'.
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Choudri → say → wrongdoing
The Sacramento County district attorney’s office later declined to file charges, citing insufficient evidence, and said no further action would be taken.
The expenses investigation adds another layer of scrutiny to an already closely watched project.
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investigation → decline → project
Independent Inspector General Benjamin Belnap, who conducted the review, said the travel findings pointed to a wider problem.
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findings → conduct → problem
'The authority has not developed sufficient controls, and reinforced a culture, that ensures compliance with state laws and regulations,' he said in his report.
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he → develop → report
The authority said it would strengthen internal controls, impose more rigorous documentation and approval requirements and recover improper costs identified by the Inspector General.
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it → say → General
The project has faced mounting scrutiny over its timetable and ballooning costs.
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project → face → timetable
California voters originally approved a much larger vision linking Los Angeles and San Francisco, but the immediate focus has shifted to the Central Valley segment between Merced and Bakersfield.
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focus → approve → Merced
The first segment is projected to cost $36 billion and is expected to be completed at some point within the next decade.
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segment → project → decade
The Inspector General has recommended that the authority update its travel policy, establish a uniform travel-request form and seek reimbursement from the four firms for unallowable expenses.
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authority → recommend → expenses
The authority has said it will implement some of the recommendations by March 2027, when the Inspector General’s office plans to review its progress.
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office → say → progress
The Daily Mail reached out to KPMG, Nossaman LLP, AECOM-Fluor Joint Venture and SYSTRA/TYPSA Joint Venture for comment.
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Mail → reach → comment
KPMG and Nossaman declined to comment.
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KPMG → decline → ?
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