Monday, April 9, 2012

Congressional panel launches probe of California's high-speed rail project


The House Committee on Oversight and Government Reform wants to look into possible conflicts of interest and how backers plan to spend billions in federal funds.

A congressional committee has launched a wide-ranging examination of the California high-speed rail project, including possible conflicts of interest and how the agency overseeing it plans to spend billions of dollars in federal assistance.

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.

Committee members say they want to ensure that tax dollars are being spent appropriately and check for possible conflicts of interest involving rail officials and contractors. They also plan to determine whether a large government commitment to the bullet train would siphon federal tax dollars away from other important transportation projects.

"California high-speed rail was sold to voters as a grand vision for tomorrow but in practice appears to be no different than countless other pork-barrel projects — driven more by political interests and consultant spending than valid cost-benefit analysis," Issa said. "Before more taxpayer money is sent to the rail authority, questions must be answered about mismanagement, conflicts of interest, route selection, ridership and other risks."