Authorities in Mexico's Caribbean coast state of Quintana Roo say the former governor sold state-owned properties to associates at prices far below their market value.
The state is home to resorts like Cancún, Playa de Carmen, Cozumel and Tulum.
The state's chief auditor said Tuesday that ex-Gov. Roberto Borge sold nearly 23,500 acres (9,500 hectares) of land around those resorts.
Rafael Antonio del Pozo said the properties were acquired "by people and businesses that were personally linked to the ex-governor."
Del Pozo said the prices "in some cases did not even amount to 1 percent" of market value.
The government land serves as a buffer against development, or as a reserve for future tourism projects.
In some areas, Borge sold nearly half the reserve before leaving office in September.