City & Guild Foundation starts own probe into PeopleCert deal

City & Guilds Foundation has agreed to hold an independent inquiry into the controversial sale of its City & Guilds awarding business.

The probe will seek a “clear, evidence-based understanding” of the charity’s decision to sell its business to privately owned PeopleCert for £166 million last year, including the rationale and governance processes trustees followed.

Findings from the inquiry, which will be led by a senior barrister, are expected to be shared with the charity’s advisory “council” this autumn and published publicly.

It will be separate from the Charity Commission’s ongoing inquiry into the sale, which is probing trustee decision-making and bonuses paid to senior executives after the deal went through.

Trustees sold the vocational and technical awarding operation, established 150 years ago, to the for-profit PeopleCert awarding business owned by Greek businessman Byron Nicolaides last October.

The charity has since faced intense scrutiny over leaked details of million-pound bonuses for senior executives involved in the deal, prompting the ongoing statutory Charity Commission investigation.

This week, PeopleCert concluded its own probe into the conduct of the senior executives, which accused the now-dismissed CEO Kirstie Donnelly and chief financial officer Abid Ismail of paying themselves bonuses of £1.7 million and £1.2 million respectively “without authorisation”.

Demand for answers

The charity’s announcement to hold an inquiry follows pressure from an action group made up of members of its advisory council, fellows and senior leaders, who demanded an investigation into how and why trustees agreed to sell the historic awarding and training business after 30 months of secret bidding and negotiations.

The advisory council, which includes representatives of historic City of London livery companies that co-founded the charity more than a century ago, is understood to have only been informed two weeks before the sale.

A spokesperson for the City & Guilds of London Institute, now known as the City & Guilds Foundation, said: “We’re really pleased to have been able to find a constructive way forward with representatives of our members and counsellors regarding the resolution at our yearly meeting.

“An independent inquiry, led by a King’s Counsel, will go ahead with the aim to establish a clear, evidence-based understanding of the factors behind the strategic decision to sell the charity’s awarding, assessment and training businesses, and to include the rationale and the governance processes involved.

“The independent inquiry will also identify lessons for strategic renewal that will strengthen future governance, transparency, and accountability consistent with our emergent strategy.”

The spokesperson added that the KC leading the inquiry was yet to be appointed and that the charity intended to publish his or her findings.

The move comes two months after the charity’s advisory council passed a resolution calling for an independent inquiry into “all aspects” of the sale.

Council member Neil Bates, who is also a member of the City & Guilds action group, said the group strongly welcomes the inquiry announcement.

He added: “I want to acknowledge the positive and collaborative leadership shown by the new chair, Jessica Leigh Jones, and her team in working with us to reach this point.

“Their commitment to an inquiry of genuine independence, led at the highest level, has been important in enabling this constructive way forward.

“This inquiry is not only about understanding what happened — it is a necessary foundation for rebuilding public trust and confidence as City & Guilds develops its future strategy and renews its role as a national institution.”

It also follows the appointment of chair Jessica Leigh Jones, who took over the charity’s trustee leadership role from Baroness Ann Limb in April.

Limb stepped down in January as she prepared to enter the Lords amid a controversy over inaccurately claiming she had a PhD.