An ethical debate is raging as the U.S. Federal Government has halted funding to the controversial “Bullet Train” project. Conflict of interest for who, in playing politics with the train to nowhere?
The cancellation of the funding has led to politics and accusations. However, the issue transcends politics as we shall see.
Governor versus President
Gavin Newsom, the Governor of California is no fan of President Donald Trump. The two broadly disagree on immigration policy and Newsom feels that the POTUS is getting back at the governor by cutting funding. That may – or may not – be true, but there are also ethical issues afoot.
Roy Hill is a consultant for the bullet train. He works for a company called WSP. Hill is 
responsible, apparently, for awarding, modifying or canceling contracts with various vendors to the multi-billion-dollar project. Recently, Hill changed the contract the State of California had with a company that was a construction company to the project, apparently in favor of the company. He changed it to the tune of $51 million. Here’s the problem: the consultant held more than $100,000 in shares.
When WSP learned of this they suspended Hill pending an investigation. Said Denise Turner Roth, the consulting firm’s chief development officer:
“We hold ourselves to the highest ethical standards. We take these allegations seriously and will cooperate fully with the investigation. Mr. Hill has been temporarily suspended while this matter is reviewed.”
Final Straw – Playing Politics with the Train to Nowhere?
The bullet train is a massive embarrassment. It is a decade or more behind schedule and deeply in debt. The cost to complete has risen to nearly $80 billion with no end in sight; perhaps, by 2033.
The train was scheduled to make the San Francisco to Los Angeles trip in under three hours. It would have undoubtedly been a huge time saver for weary commuters. But no one, not even its most ardent supporters, believes that given the current technology, an under 3-hour trip is remotely possible.
Newsom and his predecessor Governor Jerry Brown have been blasted for the boondoggle, and Newsom (before this latest scandal broke) decided to scale back. He was going to divert the funds from a high-speed rail line between Los Angeles and the San Francisco Bay and create a line between Bakersfield and Merced. The money was there, right?
Right or wrong (depending upon political affiliation), Assemblyman Jim Patterson, a Republican and a member of California’s Fair Political Practices Commission has launched his own investigation into the practices of Roy Hill.
At this point, the train to nowhere has already been funded by the Federal Railroad Administration a “measly” $2.5 billion to build the original railway with another $1 billion, give or take, pledged. The POTUS and federal authorities in addition to halting the project may be suing the state for the return of funds. It will be a case of double indemnity in terms of taxes on the already burdened California taxpayers.
Where’s the Ethics?
It is certainly easy to view this scandal politically or even environmentally. Politically, Newsom is blaming Trump and visa-versa. Environmentally, if the high-speed rail line would have displayed a major positive effect and not a feel-good message then it is certainly worthy of support.
However, hidden under the failures and the blame game is an unavoidable, ethical truth: at least one senior executive was about to scam the system. He had no oversight, he had an opportunity to pick up a cheap stock, favor it with a contract and then cash in on the profits. It was an ultimate case of insider trading where he even controlled the contracts. How much he could have made is conjecture, and who he might have told is guesswork too.
The train to nowhere may very well scam the taxpayers out of billions. For now, the ethical weight of poor choices will rain on one man among many.
