CEO of California high-speed rail project loses contracting power in key vote as spending scandal grows

The CEO of California’s beleaguered high-speed rail project is facing the fallout of a spending scandal after the High-Speed Rail Board voted Friday to cancel his contracting powers — after which he refused to answer reporters in person.The board voted 7-2 to strip Chief Executive Ian Choudri of his sole authority to sign and manage contracts under $25 million and to require the agency’s in-house attorneys to approve or change any new or existing contracts.“I wanted to call this special meeting to demonstrate just that we are not going to ignore, and we’re not going to sweep under the rug issues that are affecting this organization and impacting the people of California,” Board Chair Steve Kawa said at the meeting.“We don’t need another special meeting because we know if there are issues there, we have to address them now.

But if they’re not addressed by the staff, they will be addressed by this board.”The decision came after a damning audit revealed that the High-Speed Rail Authority paid more than $680,000 in dubious travel expenses to consultants connected to the project — including premium plane tickets and rideshare trips to gyms, nightclubs and an “escape room.”The rail agency paid some $2 million in travel payments to four consulting firms — financial, legal and track design contractors — but handed out a slew of questionable reimbursements in the process.Consultants billed the state for premium flight upgrades, prohibited international travel and rideshare trips to restaurants, a cigar lounge and Choudri’s house, according to the report and speakers at the meeting.“I am outraged that we would be treated like a piggy bank for these kinds of expenditures,” said board member Lynn Schenk.Choudri reportedly told board members at the meeting that “we remain committed” and “take full responsibility and accountability to fix if there was something broken in the system.” He mentioned “displicinary actions” were being...