State won’t pay rail invoices subject to subpoena by feds | WHAT REALLY HAPPENED

State won’t pay rail invoices subject to subpoena by feds

The state has warned the Honolulu rail authority that it will not release funding for invoices that are being scrutinized by the federal government as part of the ongoing federal investigation of the city rail project, according to state Comptroller Curt Otaguro….

The state Department of Accounting and General Serv­ices reviews invoices from the Honolulu rail project to determine whether they qualify for state funding, and Otaguro said he instructed the rail authority “not to submit any invoice that is in question under the federal subpoena and investigation.”…

As of the end of last year, DAGS had refused to reimburse HART for invoices worth $40.4 million until rail officials provide more information, Otaguro said.

DAGS is not flatly rejecting those invoices, Otaguro said, but instead is asking for additional documentation to confirm they qualify for funding from the proceeds from the state hotel room tax and the half-percent excise surcharge on Oahu, which provide most of the funding for rail.