The two most senior executives at the prestigious vocational training body City & Guilds have been placed on leave, a move that follows the launch of a formal Charity Commission inquiry into multi-million pound bonuses awarded after a major business sale.
Executives Absent Amid Mounting Scrutiny
City & Guilds has informed its staff that chief executive Kirstie Donnelly and chief financial officer Abid Ismail will be "absent from work for a short period." This development comes just a week after the charity regulator announced a statutory investigation into the organisation.
The Charity Commission's probe was triggered following revelations by The Guardian concerning substantial bonus payments made to executives. These payments, understood to include approximately £1.7 million for Donnelly and £1.2 million for Ismail, were made after the charity sold its qualifications and awards business to the private international certification firm, PeopleCert, last year.
The Charity Commission Investigation Unpacked
The statutory inquiry will examine a range of issues surrounding the 2023 sale. A key focus will be "concerns raised in public reporting relating to the sale and bonuses awarded to its executives." It is crucial to note that the investigation is directed at the charity, the City & Guilds London Institute (CGLI), and not the privately-owned operational business now under PeopleCert.
Both Donnelly and Ismail remained with the business following its acquisition by PeopleCert. In their temporary absence, their responsibilities will be covered by Andy Moss, City & Guilds' chief customer officer, and Konstantinos Andrikopoulos from PeopleCert's finance team.
The company has previously stated that the controversial bonuses were not agreed or paid by the charitable arm, asserting that remuneration is a matter for the new private owner. The charity trustees have said they are cooperating fully with the inquiry and remain confident their actions were "proper, transparent, and in line with our charitable purpose."
Historic Institution Faces Modern Crisis
Founded in 1878 and granted a royal charter by Queen Victoria in 1900, City & Guilds is a cornerstone of UK technical education. It provides qualifications and apprenticeships across diverse sectors, from engineering to hairdressing, supporting around 1.1 million people annually. Its famed alumni include chefs Jamie Oliver and Gordon Ramsay, and former England manager Gareth Southgate.
The charity stated that selling its trading arm to PeopleCert generated a cash windfall of £180m to £200m, which was intended to secure its long-term charitable future. However, reports have since emerged that the privatised business is undertaking a £22 million cost-cutting drive and reducing its UK workforce.
The placing of its top leaders on leave marks a significant moment for this venerable institution as it navigates a serious regulatory investigation and seeks to maintain public trust.
