California high-speed rail chief resigns over expenses scandal

Summarised from 2 outlets · 3 reports · Updated 30 Oct, 21:09 · Archive

Ian Choudri resigned as CEO of California's High-Speed Rail authority after a state audit found nearly $600,000 in improper consultant expenses.

Ian Choudri resigned as CEO of California's High-Speed Rail authority on Wednesday, submitting his resignation letter that evening. He cited 'important personal and family priorities' as his reason for stepping down after a two-year tenure marked by controversy surrounding the long-delayed project.

The resignation followed a damning state audit released in September by California's office of the inspector general. The investigative report found the rail authority had paid $543,000 to $593,000 in improperly approved travel reimbursements for consultants. These included first-class flight upgrades, rides to bars and restaurants, and expenses for gym visits, an escape room and a nightclub. The report raised questions about whether business and pleasure were mixed under Choudri's oversight.

Following the audit findings, the board stripped Choudri of his contracting power earlier this month. The California High-Speed Rail Board appointed Joe Stephenshaw, a Department of Finance head and longtime advisor to Governor Gavin Newsom, as interim CEO at a Thursday board meeting.

The troubled bullet train project, envisioned to connect Los Angeles and San Francisco, has faced mounting criticism over its soaring costs and lack of progress. Eighteen years after voters approved the multi-billion-dollar bond measure, no track has been laid. Cost estimates have ballooned from an initial $33 billion target to between $126 billion and $231 billion, depending on the project scope.

How it is being reported

• Ian Choudri’s resignation should not save high-speed railThe resignation of California High-Speed Rail CEO Ian Choudri this week is the latest sign that the project ought to be canceled altogether.New York Post · 30 Oct, 20:53
• California high-speed rail chief quits amid billowing expenses scandalIan Choudri resigns after report found agency overseeing troubled LA-San Francisco project misused over $600,000 in public funds The chief executive of California’s embattled high-speed rail authority abruptly resigned on Wednesday, over a month after a state watchdog determined the agency had misused public funds. In September, California’s office of the inspector general released an investigative report finding that the rail authority had paid $543,000 in travel-related reimbursements for consultants that were not allowed, including international or out-of-state travel expenses. Continue…Guardian Business · 30 Oct, 01:37
• California High Speed Rail authority names new interim CEO after former chief’s abrupt resignationCalifornia’s rail authority has put a longtime Gov. Gavin Newsom advisor in charge of the state’s beleaguered bullet train project after its former boss, Ian Choudri, submitted his resignation letter Wednesday night. Department of Finance head Joe Stephenshaw has been appointed interim CEO of the project, the High Speed-Rail Board said at a Thursday meeting....New York Post · 29 Oct, 17:51

In this story: Ian Choudri · Joe Stephenshaw · California High-Speed Rail authority · California · Los Angeles · San Francisco

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