Around $1.1 billion (CNY6.7 billion) in funding was misused in the construction and operation of a major trans-regional power transmission project in China, based on a report released on Monday by the country's top auditing office.

Audits have been conducted from April to July 2013 to look at the investment, construction, and fund appropriation in 21 projects included in the west-to-east power transmission program. The results of the audit have been revealed on Monday by the National Audit Office (NAO), China Daily detailed.

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The NAO found that some companies won the construction contracts without going through the required bidding process. Other anomalies in the tendering and bidding involved CNY3.44 billion, which makes up 16% of the total amount audited.

A similar bidding anomaly was uncovered in the procurement of equipment and other materials, which was handled by some bidding firms. The amount involved accounted for around CNY819 million in illegal profits.

The NAO also found that a number of grid companies had made too many estimates for the investment in the projects. As a result, around $1.04 billion worth of unnecessary expenses and over-estimated investment had accumulated.

Some companies were even found to have created fake contracts and receipts to allow them to swindle CNY1.38 billion in project construction funds from bigger power firms.

The NAO said it has already forwarded leads to the appropriate departments and authorities. The audit results have been shown to the State Grid Corporation and China Southern Power Grid, two of the state-run firms controlling the power transmission project.

The west-to-east power transmission program was launched in 1993 with the purpose of transmitting power from the western part of China to the power-deprived areas in the eastern region. In June 2013, 43 out of the 48 approved projects were completed and began operating using a CNY179 billion investment.

Tagspower grid, fund misuse, power, transmission, National Audit Office, China corruption