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…West-East Gas Transmission project…CNPC replaced the products that were deemed unfit for use after the audit and punished related staff and departments…[and] launched internal investigations...This is the second audit conducted on the second phase of construction...In June 2010, NAO director Liu Changyi disclosed that misconduct such as violations in bidding, financial falsification and environmental damage related to the project could amount to 833 million yuan in losses for the state.