An internal investigation has found that two senior executives at City & Guilds awarded themselves millions of pounds in bonuses without proper authorisation, following the charity's £166m sale last year. The report, commissioned by PeopleCert, the private company that acquired the vocational awards business, alleges that former chief executive Kirstie Donnelly and finance chief Abid Ismail paid themselves nearly £3m combined.
The investigation also uncovered that a further £2m was paid to other senior executives and 60 junior colleagues through a scheme that came to light in December. PeopleCert stated that the bonuses and salary increases were in direct breach of the executives' duties and caused significant harm to the organisation's reputation. The company intends to recover the amounts from Donnelly (£1.7m) and Ismail (£1.2m) and will make referrals to relevant authorities.
Donnelly and Ismail's lawyers have denied the allegations, asserting that their clients acted reasonably and honestly. They claim that all bonus payments were approved and documented as part of the wider transaction process, with both the seller and buyer fully involved.
The controversy has prompted the Charity Commission to open a statutory inquiry into the sale and bonuses. Following the revelations, Donnelly and Ismail were suspended, and PeopleCert is seeking repayment from other executives, while ratifying payments to junior staff who were not fully aware of the scheme.
