Watchdog finds $700K in improper rail consultant expenses

An internal watchdog report found the California High-Speed Rail Authority improperly paid consultants nearly $700,000 for travel and expenses that violated state rules, including trips to recreational venues. The agency has agreed to strengthen controls and recover improper costs, but the scope of accountability and recovery remains unclear. The findings, released Tuesday by the Office of the Inspector General, detail a pattern of wasteful spending on four consulting firms providing legal, financial, and design services. The review covered approximately $1.15 million of over $2 million in travel reimbursements billed between June 2024 and April 2026. Investigators found the authority routinely approved payments without verifying necessity, often after travel occurred and without required documentation. The improper payments totaled about $680,500, including expenses for rideshares to gyms, restaurants, bars, a nightclub, an escape room, and a cigar lounge. The report also cited premium flights and $118,000 in international travel explicitly barred by contract. Authority officials, including CEO Ian Choudri, approved payments without sufficient justification.