Austin, Texas – Texas Central is once again the subject of unwelcome attention from Texas legislators.
KBTX-TV reported on Thursday (April 3) that the state transport commission voted to summon financial documents from the company, and that a representative from Texas Central did not fully answer questions regarding the finances, management and foreign assistance of the proposed Dallas Houghton high-speed rail route.
The subpoena follows testimony from Andy Gent, who represented the company at a hearing in the House bill in 2003. The law requires businesses to provide details to the Texas Department of Transport each year regarding the method of funding, estimated costs, predicted riderships, routes, routes, and current or planned foreign investment disclosures.
The bill was introduced by Rep. Cody Harris (R-Palestine). He is also the sponsor of a bill that prohibits state or local government funds from being used to modify roads and respond to highway projects (see Texas Law on Roads), which amends the 2017 law prohibiting the use of state funds on privately owned or operated high-speed rail lines.
During Monday’s hearing on the road bill, Gent said the company has a new CEO, John Kleinheinz. Online information identifies him as CEO of Kleinheinz Capital Partners and shows Gent dealing with “private equity and special circumstances” for Kleinheinz Capital.
On Thursday, when he was asked for financial details, Gent told the committee: He said the company recently acquired a Japanese partner, but it still decided on its structure after it acquired the project in January. “We’re trying to figure out how to do this right,” Gent said.
It did not soften committee members. “Why are you concerned about providing this information to the Texans,” says Rep. Caroline Harris Davila (R Round Rock) and says, “The fact that you don’t own it (information) is important to these Texas that are affecting these Texas and is important to those who are affecting it.” The committee subsequently did not suggest that they would issue a subpoena of information.
Texas Central has been primarily mo-death since 2021, halting website updates and responding to inquiries. Since 2020, its website is the only important new post. Two press releases. One of these was the 2023 Amtrak announcement, which had entered into a partnership with the company to pursue development of the route. At the time, Michael Buy was identified as Texas Central CEO. (See “Amtrak working with Texas Central, August 9, 2023, Newswire). In the online article, BUI was identified as the senior managing director of FTI Consulting, and his Texas Central mailing address was the same as the FTI Consulting address. That address is still available on the company’s website.
