LOS ANGELES — The leading consultant on California’s high speed rail project has been suspended after a state agency began investigating a possible conflict of interest in his approval of a multimillion-dollar contract, the Los Angeles Times reports.
Roy Hill, deputy chief operating officer for the California High Speed Rail Authority and an executive at consulting firm WSP, signed a $51-million change order for a construction team led by a Spanish firm, Dragados, at a time when he may have owned more than $100,000 in stock in Jacobs Engineering, which is part of the Dragados team.
The state’s Fair Political Practices Commission has begun a review of the situation, leading to Hill’s suspension by WSP, and has up to 28 days to decide whether to launch a formal investigation. The rail authority has also begun its own internal review.
The high speed rail project, plagued by cost overruns, has had its initial scope cut back by Gov. Gavin Newsom [see “California governor sinks SF-LA high speed rail plans,” Trains News Wire, Feb. 12, 2019]. It is also the subject of a battle between the state and federal governments over a U.S. decision to revoke funding [see “California governor vows to fight federal funding cut to high speed rail,” Trains News Wire, May 17, 2019.].
Renault: I am shocked- shocked- to find that gambling is going on in here!
Croupier: [hands Renault money] Your winnings, sir.
Renault: [to croupier] Oh, thank you very much. [announcing to the room] Everybody out at once!
The contract award may or may not be a conflict of interest, but it seems like this part of thestory would be: “..deputy chief operating officer for the California High Speed Rail Authority and an executive at consulting firm WSP..”
Nice Casablanca reference John P.
Pending investigation I wouldn’t think this is necessarily a serious conflict.A lot of people own stock in a lot of places and eventually something overlaps.
Sounds like a Chicago politician that moved west.
And this, children, is why all of my holdings are in a blind trust. When you are dealing with this much money, and this kind of authority, things get very political and dangerous.
Did Hill commit malfeasance? I have no clue. But I know this much. It doesn’t matter. Someone wants him out of the way (or wants a scapegoat) and this allegation, true or false, makes him a suitable target.
The above comments are general in nature and do not form the basis for an attorney/client relationship. They do not constitute legal advice. I am not your attorney. Find your own damn lawyer.