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The local audit department has found a number of loopholes involving 1.2 billion yuan in the highway management in South China's Guangdong province recently.

There exist a lot of illegal operations in highway management in Guangdong, according to the audit report on provincial budget execution released by Guangdong audit department. 

Some separate contracts of certain highway projects whose amount exceeded the legal required amount were signed without bidding, which involved an amount of 142 million yuan. The largest part of the loophole comes from falsifying the cost of construction projects with the amount of over 900 million yuan. In addition, some illegal "little coffers" have been secretly set up for some construction projects.