High-speed rail authority wasted money on first-class flights, trips to nightclub, report finds

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Set us as preferred California’s High-Speed Rail Authority approved more than half a million dollars in wasteful and unexplained travel spending that included first-class and premium flights, international travel and rideshare trips to an escape room, a night club and a cigar lounge in Washington, D.C., according to a new report.The authority spent more than $2 million in travel costs for four consulting firms from June 2024 to April 2026, according to the report released this week by the agency’s inspector general.In addition, the authority failed to comply with state law requiring it to consider the business need for travel before approving it, the report said.“Paying for travel when it is not necessary or when it exceeds what is allowed by state regulations or the contract terms is waste of public funds and is behavior inconsistent with the Authority’s role as the steward of public resources,” the inspector general’s report said.

“The Authority improperly reimbursed consultants for travel expenses that appeared unallowable under regulations intended to ensure economy to the State.”The inspector general said it reviewed about half of the travel costs incurred by the consulting firms and found that roughly $680,500 of those expenses didn’t receive prior approval — and that $543,000 in travel costs were outright prohibited.In response to a query from The Times, the inspector general’s office identified the consultants as financial advisor KMPG, legal services contractor Nossaman, program delivery support AECOM-Fluor Joint Venture and track and system design group SYSTRA/TYPSA Joint Venture.KPMG declined to comment.

Nossaman also declined comment, referring questions to the rail authority.AECOM-Fluor and SYSTRA/TYPSA didn’t immediately respond to requests for comment.Reimbursement for travel can be g...