Chinese government departments last year spent $475 million put aside to compensate farmers for land taken to build roads on entertainment, conferences, bonuses and other building projects, Xinhua news agency said on Wednesday.

In one case, in the central city of Wuhan, farmers got just 4,800 yuan ($600) in compensation per mu (0.067 hectares) of land lost, when they were supposed to have received 189,000 yuan.

Auditors also checked 20 other roads, and found that 14 had not met the transport capacity laid out in pre-building feasibility report, Xinhua said, citing a report by China's auditor general, Li Jinhua.

"Some departments in charge have the roles of decision maker, supervisor and builder, which leads to illegal operations, corruption and conflicts of interest," Li was quoted as saying.

The government pledged at the annual meeting of parliament in March to better manage land use, an issue that has become a major cause of social unrest as the country's rapid development encroaches into the countryside.