CNPC Accused of Wrongdoing in Gas Pipeline Project

(Beijing) -- China National Petroleum Corporation (CNPC), the country's largest oil and gas producer, has been accused by the national auditor of using substandard materials and other forms of misconduct in the construction of the country's major gas transmission project.

According to a report from the National Audit Office (NAO), a recent audit on the ongoing second phase construction of the West-East Gas Transmission project, which will deliver natural gas from China's resource-rich western region to the eastern cities, has found a number of flaws related with the project contractor, CNPC, and several other central state-owned enterprises.

The auditor has listed several instances of misconduct, including the purchase of substandard materials, flaws in project bidding and falsification of financial records.