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California in Brief | PLACENTIA

Audit says city owes $36 million

January 17, 2008|Dan Weikel

A soon-to-be-released Caltrans audit reports that the city improperly spent as much as $36 million in state funds to pay for an ambitious rail-corridor project, state and municipal officials said Wednesday.

Officials familiar with Caltrans' findings said the pending audit shows that $12 million was misused to buy land for the now-defunct OnTrac project and to pay expenditures authorized by the project manager while he allegedly had a conflict of interest.

They said Caltrans is also questioning the use of an additional $24 million in state funds due to lack of documentation.

The $650-million OnTrac project was shelved in 2006 after it failed to receive federal funding.

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-- Dan Weikel

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