Northamptonshire's financial scandal

Northamptonshire's honorary treasurer has resigned, and a former member of staff has been arrested and released on bail, after it was reported that a quarter-of-a-million pounds has gone missing from the county's reserves.

According to the club's audited accounts from the last financial year, £247,000 have been misplaced in "accounting irregularities". "The whole situation is particularly disappointing," the chairman, Simon Schanschieff, told the BBC, "as we made progress turning around our trading performance. I would like to say more by way of explanation, but I must ensure I avoid prejudicing any potential litigation or court cases."

Despite the missing funds, Northants recorded a loss of £36,620 in 2003, compared to a deficit of £158,000 the previous year. An internal investigation is already underway to ensure a similar fiasco does not occur again, and to recover the money if possible.

"David Beckett took over as acting chief executive at the beginning of the year," Schanschieff added, "and all internal financial processes and management controls have been thoroughly reviewed to ensure no situation of this kind can occur in the future. The club will be vigorously pursuing every possible avenue to recover any lost funds where evidence to this effect is uncovered during David's ongoing investigation."

"We have a balanced budget for 2004," he concluded, "and I can confirm to members that we are continuing to work hard to ensure the effective management of the club's affairs for the future. I am sure that the club will recover the confidence of all its stakeholders."