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Federation of Small Businesses Scandal!
  GENERAL BACKGROUND  

FSB Registered As Company Limited By Guarantee

After an almost catastrophic public scandal in 1975, (as recorded in the official history of the FSB), constutional documents and procedures were drafted and the organisation registered as a company limited by guarantee of its members.

Inconsistent Rules Require Review and Revision

A professional examination of the Federation's Articles of Association and various set of rules at national, regional, and branch levels, showed those constitutional documents to be inconsistent and in urgent need of a review and re-draft.

The absence of clear rules, predictably applied to administrative and operational processes, result in substantial abuse of authority and misuse of members funds within the Federation. Even worse the FSB is left impotent to fulfil its prime Memorandum object to;

'to protect, promote and further the interests of persons who are self-employed or direct or control small businesses and to provide a national voice and a platform for such persons'.

Use and Misuse of Funds

In 1998, FSB revenue income amounted to nearly £10million. Of that sum only £1.3m was spent on the direct member benefits which the FSB uses in its recruitment campaigns, yet over £2m was spent on 'FSB establishment' meetings.

No Just Means To Resolve Serious Disputes
(barring expensive legal action)

Sadly no means of trustworthy disputes resolution appears to be available to FSB members to resolve serious complaints against the FSB hierarchy. The FSB's own internal disputes and disciplinary procedures lack integrity due to the low credibility of those appointed to resolve disputes and administer the processes and external legal action or arbitration would be costly.

At the time in question I name David Dexter (FSB Company Secretary), Leroy Bryan (disputes committee chairman), Timothy Walker (a solicitor and disputes committee secretary as lacking the credibility and integrity need for fair and just disputes resolution.

All such matters appear ultimately to land on the desk of FSB Company Secretary, David Dexter, who, despite his statutory responsibilities as Company Secretary, insists that,

'FSB rules are merely for guidance'.

FSB Member Expelled Without Interview

In January 2000 an FSB member was expelled for daring to inform members of alleged financial irregularities and for pressing the 'FSB establishment' to conduct a proper investigation of alleged legal or actual fraud.

FSB Company Secretary and National Secretary David Dexter has also refused to inform the member of the reason for the expulsion.

This being the same David Dexter who appears to flagrantly abuse the authority of his office by blocking the processing disciplary complaints against himself and against others who form part of an elitist group of long standing FSB members who hold directorships or other high office in the FSB.

Integrity of Current FSB Advice to HM Government

Whilst the present FSB hierarchy treats the 'quiet majority' of FSB members with disdain, to the point of summary expulsion, one has to question the credibility of the general pronouncements of the FSB on behalf of small businesses, and the authority for its discourse with Her Majesty's Government.

An Independent Inquiry Is Called For

The call from FSB rank-and-file members now has to be for an independent inquiry into the operation and administration of the FSB and of the use of members funds.

In so doing, the performance and conduct in office, of the current National Secretary, David Dexter and the FSB National Treasurer Mr Gordon Catto could be examined.

For Your Further Information

In addition to the above background information, please take a look at the other information published on this page and which it is hoped, will give the reader an insight into some of the outrageous acts of some senior members of the FSB.

The table below list some newspaper, magazine and legal reports relating to the 'shady' side of the conduct of FSB affairs.

The Newspaper Title Item Topic Writer Date Page
Financial Times Article Chief quits Kevin Brown 10 Aug 01 3
Searchlight Article Antisemite last stand Steve Silver Aug 2001  
The Scotsman Article Race row Jim Gallagher 30 Jul 01  
Financial Mail Article 'Race' vote Sarah Bridge 29 Jul 01 5
Financial Mail Article Race storm Sarah Bridge 22 Jul 01 2
Financial Times Article Resignation Dispute Kevin Brown 18 Jul 01  
Financial Mail Article Race row split Sarah Bridge 15 Jul 01 2
Searchlight Article Company they keep N Lowles, S Silver Nov 2000 4
Birmingham Evening Mail Article Official suspended by group in probe Jon Griffin 27 Oct 99 21
Financial Times Letter Strong and effective voice for smal businesses David Dexter 26 Oct 99  
Financial Times Letter 'Voice' of small businesses is only a squeak Paul Horan 19 Oct 99 22
Financial Times Article Small business group probes alleged irregularities Juliette Jowit 8 Oct 99 6
Birmingham Evening Mail Article Inquiry report into business federation Jon Griffin 2 Oct 99 15
Birmingham Evening Mail Article Small business body in financial probe Jon Griffin 24 Sep 99 7
Guardian and Observer Article Swattikas and strawberry jam Diane Taylor 17 Dec 98 6

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Created  by Hubert Taylor End of This Page Last Update 21 Aug 01