ECB tightens controls in light of Stanford affair

The ECB is to review the manner in which it assesses potential investors following the collapse of its deal with Allen Stanford.

After the collapse of Stanford's financial empire, board executives were roundly criticised for a lack of checks at the time they entered into the multi-million dollar agreement with him.

Although the ECB subsequently cancelled all deals with Stanford, its two leading figures - chairman Giles Clarke and chief executive David Collier - were both savaged in the media for their roles in negotiations and the apparent failures of due diligence processes.

As a result, Clarke has announced that he would be engaging in talks with the government aimed at tightening the process of "examining whether people and institutions are fit and proper to be involved in the game". He added that he would be looking to the department for culture, media and sport (DCMS) to help.

"In the coming weeks we will engage closely with the DCMS on our plans for taking cricket forward including the framework of our new five-year plan," Clarke said. "This will include the proposals the board agreed to increase the representation of women in the governance of the game and careful examination of the fit and proper person arrangements we set for those who wish to invest in cricket or have ownership interest in our counties.

"I also plan to discuss with the secretary of state suitable arrangements for securing independent verification and input into the next five-year plan and how his department can assist in the complex financial arrangements that may be needed in examining whether people and institutions are fit and proper to be involved in the game."

At the same time as Clarke was issuing his statement, it was revealed that Stanford had refused to help the authorities investigating the alleged multi-billion dollar fraud involving his companies.

In a statement to the court, Stanford said that he would "decline to testify or provide an accounting, and will continue to decline to testify, provide an accounting or produce any documents" in the case.