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Federation of Small Businesses Scandal!

Are 1998/99 FSB Policy Claims - Fact or Fiction?

Claim One -
3 Major test case wins ?

Directors' Reports & Financial Statements
- report on page 26
- spending on page 20

Nil Spent On 'Test Cases and Assistance To Members'

The claim was made by FSB director and National Policy Chairman, Brendan Burns (pictured) , in his 1999 annual report, yet the accounts by the FSB Tresurer showed that nothing was spent on 'Test cases'.

Furthermore, as if to emphasise the point, the FSB's annual accounts show that nil spent on 'assistance to members', and nil spent on 'research projects'.

Perhaps the FSB should review its accounting procedures, its policy analysis, and possibly the accuracy of the information and the reports which its directors issue to its member and for public consumption.

Clarification Or Correction Needed

Groundless claims of test case wins could mislead FSB members, prospective members, Government ministers, and other organisations. The situation thereby begs clarification or correction.

Should The FSB Support Individual Members?

The fact that nothing was spent on individual members needs, supports reported assertions by two FSB directors, (FSB National Chairman and the FSB Policy Chairman), that the FSB was not established to tend to the needs of individual members. That point perhaps needs clarification because a non-scientific survey of members indicate that they would expect some support from the FSB in their individual 'hour of need'.

Spending On The FSB Establishment And General

At the same time the Policy Committee spent; £ 58,682 on Meetings, £ 59,493 on reports, £ 183,861 on Sub-committee costs, £ 89,966 on General expenditure(?),and £ 24,128 on Questionaires.

FSB 'Policy Empire' Gobbles Up More FSB Resources

The Policy Chairman reported that the Policy Committee now has a 'Policy Treasurer' and an 'Administration Group'. With all of those new administrators why then the anomally of 'big claims' yet no cost shown in the FSB accounts. Is it the truth that the FSB Poilcy Chairman has claimed the credit for the effort of other people and organisation.

Policy Chairman Notes Criticism Of Government Minister

The Policy Chairman proudly reported that it has been said that an unnamed Government Minister, would do well to imitate the FSB policy-making style. In the circumstances the of the the Policy Chairman appear unfounded; for one if the Government ignores and bully's its electors it would soon be voted out of office.

Criticism OK?!

If a Government Minister can be criticised by FSB officers then FSB members should no longer risk censure and expulsion for criticising FSB officers and directors. A valid question perhaps is,
"Why are FSB senior officers so sensitive to criticism, yet fight so ruthlessly to maintian to be maintained in office, 'year in and year out'?


Indeed, the FSB constitution appears to forever being changed, so creating obstacles which prevent new blood from gaining high office in the FSB.


Claim 2 -
FSB Accounts Allege That Petrol Retailers Campaign Given £20,395

Directors' Reports & Financial Statements
- spending on page 22

£20,395 Spending Questioned In FSB 1999 Accounts

Under 'Other management costs' the FSB accounts report that £ 20,395 was spent on a 'Petrol retailers campaign'!

Was there a campaign? Or was the amount granted to an individual FSB National Councillor who was also an FSB director/shadow director.

No explanatory note appears in the annual report/accounts regarding the spending of the £ 20,395. The director (National Councillor) concerned admits that he received a grant to pay certain 'personal' legal/professional costs. beneficiary himself admits

The then FSB chairman of the FSB committee with responsibility for 'petrol retail' matters has stated that £20.395 was not granted to a petrol retail campaign


Claim 3 -
Credit Union Development Costs?

Directors' Reports & Financial Statements
- spending on page 22

To Which Credit Union Did The FSB Give £ 4,418 ?

The FSB's annual reports and accounts do not indicate that the FSB owns or runs a credit union, yet £ 4,418 was spent developing a credit union!

Who Owns The Credit Union?

Who owns that credit union? Who are the people who administer it? What is the formal legal connection between the credit union and the FSB, which authorises the use of FSB members' funds to develop it.

Accounts Show No FSB Credit Union!

It further appears that there is a credit union which is administered by people known to the FSB National Treasurer, and has an office in the geographical area of the FSB region which is chaired by Gordon Catto (pictured) , FSB 'Finance Director' (National Treasurer).

No explanatory note appears in the annual report/accounts regarding the reason for the development of the credit union.



FURTHER COMMENTS ...

History Repeating Itself ...

A BBC Television's Nationwide programme in November 1975 in which Martin Young presented a report and interviewed several senior FSB officers, blew the lid off a devastating FSB scandal.

It was said that at the time the FSB was reduced to squabbles in public, calls for public enquiries, and, accusations of extravagance and incompetence. The scandal involved disgrace and resgnations, including that of the FSB founder.

By November 2000 will history have repeated itself? Or will the current FSB hierarchy support the call for an INDEPENDENT INQUIRY before it is too late to avoid possible public shame.

The FSB's begs close and independent scrutiny.


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  Created 1 May 00   End of This Page Last Update 18 Aug 01