Banned Pakistan paceman Shoaib Akhtar last week triggered a new controversy by claiming in a television interview that he was offered money to underperform in South Africa in 2003 and in India.
The International Cricket Council (ICC) Anti-corruption Unit quizzed Akhtar and three other Pakistani players -- Younis Khan, Danish Kaneria and Umar Gul -- last week.
Nawaz said the ICC was not serious about stopping match fixing.
"I have given a lot of information on fixing to the ICC but they are not serious in stopping the rot. Now, through the various private leagues which offer millions of dollars, this menace will boom," said Nawaz, who played 55 Tests for Pakistan.
He said the ICC-recognised multi-billion dollar Indian Premier League (IPL), which starts on April 18, should be monitored.
"Millions of dollars are spent on this league, and I see an open field for bookmakers to fix matches and the players will be approached to lose matches. There should be some serious monitoring on that," he added.
The former paceman -- nicknamed the Sultan of Swing -- said the ICC had double standards in recognising the IPL and ruling a rival faction, the Indian Cricket League (ICL), unauthorised.
"I think boards of the country are getting big money and that is why they have allowed their players to feature in the IPL and have banned players who joined the other league," said Nawaz.
"I think Kapil Dev (former Indian captain who heads the ICL) must sue the ICC in an international court."
Former Pakistan captain Latif said players would be vulnerable to corruption in private leagues.
"Players are more likely to fall prey to corruption in private leagues as the national honour is not at stake there, so IPL people must monitor it seriously," said Latif.
Latif blew the whistle on fixing in 1995, saying some players were involved in the malpractice.
Latif blamed the ICC for not providing support to the players who reveal facts about fixing and demanded support for Akhtar.
"They (ICC) are ready to take action against a player who does not disclose information but does the ICC or ACSU offer proper protection, rewards and show respect to players who come forward and reveal the truth?" Latif asked.
"They are questioning Akhtar for not disclosing the offers (made) to him but why should any player come forward and reveal details about offers from bookies," the former wicket-keeper added.
Latif stressed fixing still existed in the game.
"Fancy fixing, and other methods are being used to corrupt players and it still exists in cricket," he said, referring to a type of fixing in which people can bet on various aspects of a match.