Egyptian authorities have arrested two state employees for allegedly embezzling over EGP 30 million (approx $1.7 million) earmarked for property compensations, the country's anti-corruption watchdog said on Tuesday

A woman who works in the Nile Delta's Sharqiya governorate, aided by an e-payment data entry employee, misappropriated money allocated for compensations to people whose properties became owned by the state, the Administrative Control Authority said in a statement sent to Ahram Online.

The pair illegally transferred the money to relatives and friends after forging their entitlement to the compensations, it added.

Initial investigations showed that the two embezzled EGP 10 million in the past three months alone.

Authorities have seized EGP 4.5 million from the suspects.

Administrative Control Authority specialists are now studying loopholes that helped the two steal the money and will take necessary measures to avoid them in the future, the statement added.

The Administrative Control Authority has in recent months filed several graft-related cases involving top state officials, including the former head of the Egyptian Customs Authority, the head of the state Food Industries Holding Company, and a number of supply ministry officials.

In November, a former governor of Menoufiya was sentenced to 10 years in prison for accepting a bribe of over EGP 27 million.