In a shocking turn of events, the two most senior executives at the renowned vocational training body City & Guilds have been placed on leave following a scandal over millions of pounds in bonuses. The Charity Commission has launched a statutory inquiry to examine the circumstances surrounding the sale of the organisation’s training and qualifications business to an international certification company, PeopleCert, and the subsequent bonus payments to the chief executive, Kirstie Donnelly, and the chief financial officer, Abid Ismail.
The investigation was sparked after reports emerged that Donnelly and Ismail had received bonuses of £1.7 million and £1.2 million respectively, shortly after the charity’s business arm was privatised. This came amid a £22 million cost-cutting drive and a reduction in the UK workforce of the newly private City & Guilds Limited.
Founded in 1878 by the City of London and 16 livery companies, the original City & Guilds institute developed a national system of technical education, offering qualifications and apprenticeships in a wide range of fields. The organisation has a storied history, with alumni including renowned chefs, a former England football manager, and a celebrity gardener.
In a statement, PeopleCert, the new owner of City & Guilds Limited, said that an internal investigation had been commissioned “in order to fully understand events before and after the sale” by the charitable foundation, including the “individual conduct of executives.” Donnelly and Ismail have been temporarily relieved of their duties, with their responsibilities being assumed by other senior leaders to ensure continuity of service for partners, customers, and learners.
The Charity Commission’s inquiry will examine a range of concerns, including those “raised in public reporting relating to the sale and bonuses awarded to its executives.” The trustees of the City & Guilds of London Institute (CGLI) charity, which previously owned the training business, have stated that they are cooperating fully with the investigation and remain confident that their actions have been “proper, transparent, and in line with our charitable purpose.”
This scandal has raised serious questions about the governance and accountability within the City & Guilds organisation, and the Charity Commission’s investigation will be closely watched as it seeks to uncover the truth and restore public trust in this historic institution.