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One parking inspector and his spouse have been detained on suspicion of misappropriating over €1m out of the coin-operated meters of a modest German town.

The unnamed municipal employee is believed to have removed cash from street meters in the town on numerous occasions and deposited them in bank accounts that his wife had control over, local police said in a statement.

A money laundering alert by a bank notified authorities to the suspected theft. The parking inspector has been accused with 720 counts of embezzlement, while his spouse is charged with 720 counts of assisting in theft.

Kempten Head Thomas Kiechle expressed he was shocked and disappointed by the claims.

In October, the Kempten legal authorities were informed that cash was frequently being placed into multiple bank accounts, as reported by reports.

Officers then searched work locations in the morning of November 24, the very day that a 40-year-old man and a 38-year-old woman were taken into custody.

They are now being detained in different detention facilities.

It is uncertain how much time it might have taken the pair to accrue the amount.

In reaction to the accusations, the mayor declared the appointment of a commission to examine previous work processes, uncover potential flaws, and effectively remedy them for the future.

He added that the identities of the individuals could not currently be disclosed due to the active probe and confidentiality issues.

In a official comment, the mayor said: "I naturally support the legal authorities and the police in their detailed investigation of the allegations."

"Until the case are resolved, the innocent until proven guilty applies," he added.

The town is among the most historic settlements in Germany. Located in the southern region, it sits under the hills of the Allgäu and has approximately 70,000 residents.