The Russian Interior Ministry said on Friday, Nov 16, it had uncovered a possible embezzlement of 53 million rubles (almost $1.7 million) in state funds by a defense subcontractor, RIA Novosti reported.

The possible embezzlement has uncovered in state funds, intended for maintenance of infrastructure at garrisons.

A subcontractor has received about 90 million rubles (about $3 million) for an extensive renovation of barracks and repairs in the building’s ventilation system.

“The subcontractor received about 90 million rubles for the purpose since 2011. At the same time, the building has recently been extensively renovated and had no ventilation system since 2010. The federal budget’s losses are estimated at 53 million rubles,” a spokesman for the defense ministry’s press service said.

Two suspects were detained in the case - the subcontractor’s general director and chief accountant.

The probe is underway by the Interior Ministry’s department of economic security and anti-corruption measures.

The Russian Defense Ministry has found itself at the epicenter of a spiraling state property scandal in the past weeks.