Some 21 billion yuan (US$2.5 billion) had been returned to the national treasury after China's top audit body found rampant corruption in Party and government departments, the nation's top legislature was told.

The probe had also resulted in the punishment of 754 officials, Xinhua News Agency said, quoting a 26-page report submitted by the State Council to the Standing Committee of the National People's Congress.

The National Audit Office found massive and rampant misuse of funds in 55 government ministries and commissions under the State Council, the report said.

It did not give a figure for the total amount of misappropriated funds.

A total of 41 government departments diverted 1.42 billion yuan to build homes and offices. The money had been allocated for special projects, Xinhua said.

Of these departments, 33 had "rectified their mistakes" and some 79 percent of the misappropriated money had been returned to the State, it said.

However, authorities are still discussing penalties for officials at the General Administration of Sports, who auditors said had embezzled some 131 million yuan earmarked for 2008 Olympics projects.

Editor: Olivia