Rail Watchdog Finds Nearly $600,000 in Unallowable Consultant Travel

The watchdog substantiated allegations of wasteful and unallowable travel

BAKERSFIELD, Calif. — California’s High-Speed Rail Office of the Inspector General says the rail authority improperly reimbursed outside consultants for nearly $600,000 in travel that appeared to violate state rules, contract terms or both during fiscal years 2024-25 and 2025-26.

The inspector general reviewed approximately $1.15 million of more than $2 million in travel-related costs paid to four consulting firms. CalMatters reports that at least $685,000—roughly 60% of the sampled payments—lacked documented advance approval, and the watchdog found that approved requests were often supported by vague explanations.

The investigation was a targeted review, not a complete audit of every travel payment. Its findings establish control failures and questioned reimbursements; they do not establish that every consultant trip was improper or that anyone committed a crime.

Premium airfare, prohibited international trips and rides to personal destinations

The report identified first-class or other premium airfare without adequate justification, including travel booked close to departure. It also found approximately $118,000 connected to international travel under a contract that expressly prohibited international travel.

Investigators documented reimbursed ride-hailing trips to Planet Fitness gyms, restaurants, a bar, a nightclub, an escape room, a tiki bar and a cigar lounge. One expense was an approximately $40 Uber Black ride of less than one mile in downtown Sacramento.

The central finding is not that visiting any particular business proves misconduct. The inspector general questioned why consultants submitted those transportation expenses as state business and why the authority paid them without documented scrutiny of the business purpose.

Four consulting firms were covered by the review

The sampled contracts involved KPMG LLP, Nossaman LLP, AECOM-Fluor Joint Venture and SYSTRA/TYPSA Joint Venture, according to the inspector general and CalMatters. The firms provide financial, legal, project-management, track and systems-design services to the authority.

CalMatters reported that none of the four firms immediately responded to its requests for comment. Their inclusion in the report does not establish that every charge submitted by each firm was disallowed, and the reviewed public material does not announce civil or criminal charges against any company or individual.

One legal consultant received about $40,800 in travel reimbursements and another $86,500 for travel time tied to 30 trips between Denver and Sacramento in one year, CalMatters reported from the watchdog’s findings. The report questioned whether repeated in-person travel was necessary and sufficiently documented.

The authority promises tighter controls and possible recovery

Rail authority spokesperson Matt Rocco told CalMatters that the agency takes the findings seriously. He said the authority will strengthen internal controls, require more rigorous documentation and approvals, and recover improper costs that are identified.

The inspector general recommended that consultant travel be necessary, cost-effective, approved in advance and capped consistently with state reimbursement rules. It also called for a review of the questioned expenses and repayment when a legitimate business purpose cannot be supported.

The authority agreed with some recommendations and partially agreed with others, with corrective actions scheduled into March 2027. The watchdog plans to evaluate the response after that deadline. Promised reforms and recovery are not the same as completed reimbursement; the amount ultimately recouped remains unknown.

Why Bakersfield and Kern County have a direct stake

The first planned operating segment of California high-speed rail runs from Merced to Bakersfield. Kern County already contains major construction, including the Wasco Viaduct shown in the accompanying photograph, and Bakersfield is intended to anchor the southern end of the initial passenger service.

The authority’s 2026 business plan estimates the Merced-to-Bakersfield segment at tens of billions of dollars and targets service in the next decade. Against that scale, questioned travel is a small share of total project spending—but weak controls over any public money matter when the program faces major financing and schedule pressure.

The immediate accountability questions are measurable: which claims will be rejected or repaid, who approved them, whether contract managers document business need going forward and whether the inspector general confirms that reforms were actually implemented.

About the image

The accompanying photograph shows the Wasco Viaduct under construction in Kern County in March 2020. The California High-Speed Rail Authority released the image into the public domain, and it is available through Wikimedia Commons.

The image documents the locally relevant rail project but does not depict a consultant, an expense claim, any destination identified in the investigation or evidence reviewed by the inspector general.