The two most senior executives at City & Guilds have been put on leave shortly after a scandal over millions of pounds of bonuses triggered a Charity Commission investigation into the vocational training body.
The chief executive, Kirstie Donnelly, and the chief financial officer, Abid Ismail, will be “absent from work for a short period”, as its new owner, PeopleCert, commissioned an internal investigation into events before and after its acquisition of City & Guilds’ training and qualifications business.
Last week, the charity watchdog launched a statutory inquiry into last year’s sale of the qualification awards business to PeopleCert, an international certification company. The investigation will examine a range of problems, including “concerns raised in public reporting relating to the sale and bonuses awarded to its executives”.
The inquiry was announced after the Guardian revealed last month that City & Guilds executives received million-pound bonuses after the charity privatised its business arm.
The payments – understood to include a £1.7m award for Donnelly and £1.2m for Ismail – emerged after reports that the privatised City & Guilds business had also embarked on a £22m cost-cutting drive and was shrinking its UK workforce after being sold by its charity owner to PeopleCert.
Both executives had stayed with the business once it was sold by the charity to PeopleCert.
A spokesperson for PeopleCert said: “An internal investigation, led by our legal representatives and non-executive board members, has been commissioned in order to fully understand events before and after the sale by City & Guilds of London Institute (Charitable Foundation) of its awarding, assessment and training business (City & Guilds Limited), including the individual conduct of executives.
“In the meantime, Kirstie Donnelly and Abid Ismail, CEO and CFO of City & Guilds Limited respectively, will be absent from work. Their responsibilities have been assumed by other senior leaders to ensure we continue to deliver the best possible experience for partners, customers and learners.”
Donnelly and Ismail have been approached for comment. The company has previously said that the bonuses were not agreed or paid by the charity, and that remuneration was a matter for the newly privately owned business.
Founded in 1878 by the City of London and 16 livery companies, the original institute developed a national system of technical education, offering qualifications and apprenticeships in fields ranging from manufacturing and mechanical engineering to hairdressing and horticulture. It was awarded a royal charter by Queen Victoria in 1900 and says it helps about 1.1 million people a year.
The organisation has enjoyed a storied history, with alumni include the chefs Jamie Oliver, Marcus Wareing and Gordon Ramsay, the former England football manager Gareth Southgate, the celebrity gardener Alan Titchmarsh and fashion designer Karen Millen.
The training and awards business was previously owned by the City & Guilds of London Institute (CGLI), the charity that announced in the autumn that it was selling the operation to PeopleCert.
The charity, which provides grants to people in need of vocational training, said the sale gave it a cash windfall of between £180m and £200m. It said the proceeds would secure its long-term future, enable it to pursue its charitable objectives and provide increased investment and opportunities for the training business, now in private ownership.
The Charity Commission is investigating events at the charity, not the private company.
The trustees of the charity, CGLI, have said: “We acknowledge the Charity Commission’s statutory inquiry and are cooperating fully with their investigation. We remain confident that all actions taken by the trustees have been proper, transparent, and in line with our charitable purpose.
“We are committed to maintaining public trust and will continue to act in the best interests of the charity and its beneficiaries.”
PeopleCert added it would “cooperate fully with the Charity Commission’s inquiry as required” and that the plans to reduce its UK workforce would be achieved via “attrition”, rather than compulsory redundancies.
