Top two executives at City & Guilds placed on leave

The top two 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 trainer.

City & Guilds has told staff that its chief executive, Kirstie Donnelly, and the chief financial officer, Abid Ismail, will be “absent from work for a short period”.

Last week the charity watchdog launched a statutory inquiry into City & Guilds’ sale of its qualification awards business to a private company last year. The investigation will examine a range of issues including “concerns raised in public reporting relating to the sale and bonuses awarded to its executives”.

The announcement of the inquiry came after the Guardian revealed last month that City & Guilds bosses were given million-pound bonuses after the charity privatised its business arm.

The payments – which are understood to include a £1.7m award for Donnelly and £1.2m for Ismail – emerged after reports of how the privatised City & Guilds business has also embarked on a £22m cost-cutting drive and is shrinking its UK workforce after being sold by its charity owner to PeopleCert, an international certification company.

In what appears to be an email message sent to C&G staff, they were told: “We are writing to inform you that Kirstie Donnelly and Abid Ismail will be absent from work for a short period.”

Both executives had stayed with the business once it was sold by the charity to PeopleCert.

“During this period their responsibilities will be carried out, on a temporary basis, by Andy Moss, chief customer officer of City & Guilds, and Konstantinos Andrikopoulos, vice-president finance of PeopleCert, to ensure that City & Guilds continues to deliver the very best possible experience for our partners, customers and learners.”

The email did not give any reasons for the changes. Donnelly and Ismail have both been contacted, while City & Guilds did not comment. The company has previously said that the bonuses were not agreed or paid by the charity and that remuneration is a matter for the newly privately owned business.

Founded in 1878 by the City of London and a group of 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 the body says it helps about 1.1 million people a year.

It has enjoyed a storied history, and the body’s famous alumni include the chefs Jamie Oliver, Marcus Wareing and Gordon Ramsay, as well as the former England football manager Gareth Southgate, the celebrity gardener Alan Titchmarsh and the fashion designer Karen Millen.

The training and awards business was owned under the umbrella of a charity, City & Guilds London Institute (CGLI), which 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, which was presented as ensuring the long-term future of the institution to pursue its charitable objectives, as well as providing increased opportunities and investment for the now-private training business.

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.”