FRESNO (KMJ) — Central Valley Assemblymember Jim Patterson has warned that decisions made early on in the construction of the state’s high-speed rail system could be considered fraudulent behavior.
His comments come days after the U.S. Department of Transportation’s Federal Railroad Administration asked for millions of federal dollars for the project to be returned (click here to read more).
In conversation with KMJ’s Ray Appleton on Wednesday, Patterson said there is potential for litigation.
“What we do know is that the high-speed rail authority made a decision, back in the beginning of all of this, to take billions of dollars of federal money, send it out to these contractors, and they knew at the time that they did not have the property on which to build.
“That gets very, very close to fraudulent behavior.”
Patterson adds that a federal audit should be released by the summer. It follows a state audit released in November (click here to read more).
In a statement from CEO Brian Kelly, the California High-Speed Rail Authority said it has received the letter from the Federal Railroad Administration threatening funds dedicated to the high-speed rail project and is preparing a response by the March 5th deadline.
“We remain committed to delivering high-speed rail and its many economic, environmental, and mobility benefits to Californians.”
Hear the report from KMJ’s Dominic McAndrew as it aired:
