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OSI-94-6R 1 (1993-11-22)

handle is hein.gao/gaobackln0001 and id is 1 raw text is: 10370 United States GAO General Accounting Office Washington, D.C. 20548 Office of Special Investigations B-255043 November 22, 1993 The Honorable John J. Duncan, Jr. House of Representatives Dear Mr. Duncan: This letter responds to your September 8, 1992, request that we investigate allegations of fraud, waste, and abuse related to the Los Angeles Metro System. As subsequently discussed with your office, we selected and reviewed areas of administrative abuse as reported in a March 10, 1992, Los Angeles Times article and the May 4, 1992, Limited Financial Review that Los Angeles city and county auditors conducted from March 27 through April 15, 1992. We focused on alleged abuses related to vehicle use, travel, entertainment, credit cards, and the purchase of coffee and doughnuts. We selected these particular allegations for investigation because, as discussed with your office, we are not reporting any information that may be related to ongoing investigations. On April 7, 1993, we briefed your staff on our findings; and on May 21, 1993, you requested this letter. The Los Angeles County Transportation Commission (LACTC),1 created in 1976, is the principal transportation authority for Los Angeles County that oversees all planning and funding for the Los Angeles Metro System. The system's 300 miles of light rail, heavy rail (subways), and commuter rail are scheduled for completion in 2020. The Red Line project--the core of the metro system--is scheduled for completion in December 1998 at a projected cost of approximately $5.3 billion for its planned 21.7 miles. Federal funds for the project are estimated at over $1.4 billion. In brief, we found that LACTC has discontinued certain practices that led to reports of questionable spending and initiated actions to prevent spending abuses in the future. For example, an LACTC official told us that LACTC no longer 1on April 1, 1993, the LACTC merged with the Southern California Rapid Transit District to become the new Los Angeles County Metropolitan Transportation Authority. Los Angeles Metro Rail System GAO/OSI-94-6R

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