City & Guilds’ new owner PeopleCert has launched its own investigation into the conduct of the awarding giant’s top executives, FE Week has learned.
Greek-owned qualifications business PeopleCert said it has commissioned an internal inquiry “to fully understand events before and after” it bought the City & Guilds awarding business from the charity City & Guilds of London Institute in October.
PeopleCert said the investigation will be led by its legal representatives and non-executive board members, with its outcome to be confirmed “in due course”.
A spokesperson told FE Week the investigation will look at recent allegations of financial impropriety reported in the media.
This has included concerns about large bonuses the new owner paid executives shortly after the sale and questions about what information was shared with charity trustees and regulators.
It comes a day after City & Guilds staff were told that chief executive Kirstie Donnelly and finance director Abid Ismail would be “absent from work for a short period”, and a week after the Charity Commission opened a statutory inquiry into the “assurances” given ahead of the sale and trustees’ decision-making.
Exams regulator Ofqual has also told FE Week it is “monitoring developments” at the awarding business “closely”.
A spokesperson for PeopleCert said today: “As a responsible learning provider and partner, we take allegations of this nature extremely seriously.
“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.
“We will confirm the outcome of this investigation in due course but cannot comment further on the specifics at this time.
“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’s and Ismail’s duties will be covered by chief customer officer Andy Moss and PeopleCert’s vice president of finance Konstantinos Andrikopoulos.
Ofqual’s spokesperson said: “We are monitoring developments at City & Guilds Limited closely. Our priority is protecting students taking City & Guilds qualifications and ensuring they can have confidence in them.
“We have high and clear expectations of City & Guilds, in the interests of students.”
PeopleCert said it has “notified” the relevant regulatory bodies about its investigation and will “cooperate fully” with the Charity Commission’s inquiry.
The company’s spokesperson added: “PeopleCert’s acquisition of City & Guilds followed a fully-intermediated, highly-competitive sale process, led by a reputable investment bank, in which PeopleCert was selected as the successful bidder, thanks to its scale, reputation, technology and track-record.
“For now, we remain entirely focused on supporting our learners and stakeholders across the public and private sector.”
Donnelly and Ismail have been approached for comment.
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