Metro Rail Probers Call Whistle-Blower : Investigation: The fired transit official has alleged corruption. He will testify before a grand jury.

Federal authorities who are investigating allegations of corruption in the multibillion-dollar Los Angeles Metro Rail project have subpoenaed a whistle-blower as their first witness to appear before a grand jury.

The subpoena accelerates a criminal investigation that sources said was quietly opened by the FBI this month.

Robert S. Inouye, a former contract compliance administrator for the Los Angeles County Transportation Commission, was questioned Wednesday by federal investigators and a prosecutor in preparation for Inouye’s grand jury testimony next week.

Inouye has alleged in a lawsuit that he was illegally fired in July, 1990, for exposing serious “wrongdoing” among politically influential contractors as well as commission staffers.

When he filed the lawsuit in 1991, Inouye told reporters during a news conference that he was fired after launching an inquiry into allegedly fraudulent billings and wage violations by contractor Warren Hollier. Hollier has denied any wrongdoing and denounced Inouye as a liar.

Neil Peterson, executive director of the transportation commission, said local law enforcement officials have investigated Inouye’s allegations and found nothing.

He said he was surprised by the federal probe because “we have excellent communication with the FBI and this runs absolutely counter to the information we have.”

Inouye is one of eight whistle-blowers who have filed civil lawsuits during the last two years against contractors or the commission. They all charge that they lost their jobs after pointing out unsafe working conditions, substandard construction or other irregularities. Inouye is the only plaintiff to make allegations against Hollier.

Neither Inouye nor Assistant U.S. Atty. Adam Schiff, who is overseeing the federal investigation, would comment on the probe. But Inouye’s attorney, Brian Brown of Tustin, said Inouye delivered “a boxful of documents” to federal officials Wednesday and was interviewed all day in preparation for his grand jury testimony.

For the last few weeks FBI agents have been interviewing other witnesses and looking at documents, The Times has learned.

On Nov. 10, an FBI agent visited the Pasadena office of the International Union of Operating Engineers. Local union leaders have alleged that some bogus minority subcontractors have been selected for Metro Rail jobs.

Sources familiar with the probe said the FBI is examining alleged irregularities in contract awards, construction cost overruns and other billings administered by the LACTC.

The commission is overseeing construction of a 23-mile, $5.24-billion subway system, as well as hundreds of miles of light-rail track connecting downtown with outlying areas.

Funding comes from billions of dollars in federal grants, state and local taxes, and bond revenue. Officials envision spending more than $45 billion during the next 30 years on the rail transit construction program.

In September, Rep. John J. Duncan Jr. (R-Tenn.) called upon the FBI and the General Accounting Office, which is the investigative arm of Congress, to examine “disturbing allegations of fraud, waste and abuse” in the Los Angeles rail construction program. Duncan is a member of the House subcommittee on surface transportation, a panel with influence over how federal transit money is spent.

The GAO started an inquiry, and the FBI has recently opened its investigation. The Tennessee congressman asked the agencies to investigate whistle-blowers’ allegations as well as newspaper disclosures, including a report in The Times that the commission spent $2.9 million over an 18-month period for meals, entertainment, travel and automobile expenses.

Federal investigators are looking into allegations made in civil lawsuits filed by Inouye and others who have lost their jobs.

Within the last four months, three former safety engineers have sued the transportation commission or major Metro Rail contractors. The plaintiffs allege that they were fired because they refused to ignore or hide improper practices. The contractors and LACTC are contesting all whistle-blower lawsuits.