The two most senior executives at the renowned vocational training organisation City & Guilds have been placed on leave, the organisation has confirmed to staff. This move follows the launch of a formal Charity Commission inquiry into multi-million pound bonuses awarded after the sale of its qualifications business.
Executives Absent Amid Statutory Inquiry
Chief Executive Kirstie Donnelly and Chief Financial Officer Abid Ismail are now absent from work for a short period, according to an internal email seen by the Guardian. The announcement comes just one week after the charity regulator opened a statutory investigation into the City & Guilds London Institute (CGLI), the charitable body that owned the training operation.
The Charity Commission's probe will specifically examine concerns raised about the sale of the business and bonuses awarded to executives. This follows revelations that Donnelly received a £1.7 million bonus and Ismail was awarded £1.2 million after the charity privatised its business arm last year.
Sale to PeopleCert and Cost-Cutting Drive
The historic institution, founded in 1878 and granted a royal charter by Queen Victoria in 1900, sold its training and awards operation to the international certification company PeopleCert. The charity stated the sale generated a cash windfall of between £180 million and £200 million, which it said would secure its long-term charitable future.
However, the newly privatised business, which both Donnelly and Ismail remained with after the sale, has since embarked on a £22 million cost-cutting drive and is reducing its UK workforce. City & Guilds has previously stated that the controversial bonuses were agreed and paid by the private company, not the charity itself, which is the sole focus of the Commission's inquiry.
Leadership Changes and Historic Legacy
During the executives' absence, their responsibilities will be temporarily assumed by Andy Moss, City & Guilds' Chief Customer Officer, and Konstantinos Andrikopoulos, Vice-President of Finance at PeopleCert. The internal email assured staff this was to ensure continuity for partners, customers, and learners.
The trustees of the CGLI charity have stated they are cooperating fully with the investigation, adding: "We remain confident that all actions taken by the trustees have been proper, transparent, and in line with our charitable purpose." The organisation, which helps about 1.1 million people annually, boasts famous alumni including chefs Jamie Oliver and Gordon Ramsay, former England manager Gareth Southgate, and designer Karen Millen.
The Charity Commission's investigation continues, examining whether the trustees complied with their legal duties during the significant asset sale.
