Ian Choudri has resigned as chief executive officer of the California High-Speed Rail Authority, the agency responsible for developing high-speed rail in California. The decision took effect immediately, and board Chair Steve Kawa said the reason was “personal and family reasons.” The resignation followed the disclosure of irregularities in travel spending by consulting firms working with the agency.
The board of the California High-Speed Rail Authority appointed Joe Stephenshaw to succeed Choudri. The leadership change comes during a period of heightened scrutiny of the agency’s finances, after the release of findings by High-Speed Rail Inspector General Ben Belnap. His office reviewed $2 million in travel expenses incurred by four consulting firms: KPMG, SYSTRA TYPSA, Nossaman LLP and AECOM-Fluor.
The review found that $800,000 in spending did not receive the required advance approval. Investigators also identified $81,000 in prohibited consultant travel costs. Among the questioned expenses were charges tied to visits to a gym, an escape room and a nightclub. The findings raised questions about oversight of the use of public funds and the possibility of recovering the money.
Earlier in October, members of the agency’s board discussed the results of the review and agreed to increase oversight of the CEO’s decisions on spending, contracts and work with consultants. Board member Henry Perea called the findings alarming, stressing the need for transparency in managing taxpayers’ money.
Republican California Assemblymember Alexandra Macedo of Tulare had also called for Choudri’s removal. In a letter to the board, she cited concerns about financial management and insufficient oversight of spending. Chair Steve Kawa, however, gave personal and family matters as the official reasons for Choudri’s resignation.
Ed. JŁ
