A congressional panel is launching a probe of California’s high-speed rail project to ensure tax dollars are being spent appropriately and look into possible conflicts of interest with rail officials and contractors.
According to the Los Angeles Times:
The House Committee on Oversight and Government Reform, chaired by Rep. Darrell Issa (R-Vista), notified the California High-Speed Authority about the review Monday and ordered the agency to preserve its documents and records of past communications. …
As much as $4 billion in federal funds have either been provided or set aside so far for the 500-mile project, the estimated cost of which has fluctuated between $33 billion and $98.5 billion. The current estimate is $68 billion. …
The committee's notification letter says there are additional concerns about the project's compliance with Proposition 1A, the California ballot measure passed in 2008 that authorized more than $9 billion in state bonds for the project. The panel further notes that since 2010, allegations of conflict of interest have surfaced regarding authority board members at a time when the authority received and spent federal funds.