City & Guilds London Institute trustees accused of stalling inquiry into £166m sale

A picture


The trustees of City & Guilds London Institute have been accused of attempting to dodge accountability for a “catastrophic failure of governance” by stalling on the launch of an independent inquiry into the £166m sale of the vocational charity’s training and accreditation business last October.Members of the 148-year-old body voted overwhelmingly last month for the trustee board to trigger what would be the third investigation into how the foundation sold its operations to the private operator PeopleCert in October.However, members complained that the process then seemed to have stalled.The poll followed the Charity Commission opening a statutory inquiry in January, which was mirrored a day later by PeopleCert commissioning its own internal investigation into the deal.Neil Bates, an elected member of the City & Guilds council, which appoints and advises the trustees, said: “Why would they not be accountable for decisions made if everything was above board? It is shocking there has been such a catastrophic failure of governance – and subsequently a failure of accountability.

”While the council has the power to appoint City & Guilds trustees, it cannot dismiss them – unless misconduct has been shown.“There is £166m – that is what is left of the City & Guilds legacy,” Bates added.“We want to remove this trustee board from having responsibility for those funds and replace them with people properly equipped to restore good governance to the City & Guilds organisation.”A spokesperson for the charity said: “The trustees remain committed to working constructively with members to find a clear and proportionate way forward in the best interests of the charity.We are reviewing options to shape this approach, ensuring we address members’ concerns while avoiding unnecessary duplication with the Charity Commission’s investigation.

Our priority is to safeguard the integrity and future of the Institute.”The City & Guilds business, which was originally founded in 1878 by the City of London and a group of 16 livery companies to develop a national system of technical education, charges fees for its accreditations to private training businesses and has about 60% of its income “underpinned by stable government funding schemes”.Having maintained a fairly modest profile for much of its history, the current row represents the latest episode in what has been a torrid six months for the charity, which began with the then chair, Ann Limb, and chief executive, Kirstie Donnelly, openly congratulating themselves on a “landmark deal” in October.The sale created a new private company called City & Guilds Ltd, owned by PeopleCert, as well as a rebranded charity, City & Guilds London Institute (CGLI), which planned to use its financial windfall to continue its charitable works, such as providing funding to people in need of vocational training.However, in December, a presentation prepared for PeopleCert investors revealed plans for the now-private City & Guilds to shrink its UK workforce as part of a £22m cost-cutting drive.

PeopleCert informed its backers of £13m of “personnel cost synergies” that would largely be achieved by replacing departing UK staff with cheaper overseas hires.Then, a week later, the Guardian reported that Donnelly, who had by then switched from being the charity’s chief executive to the same role in the newly privatised City & Guilds, was one of the directors awarded massive bonuses after the sale by the new company.The rationale for making the payouts – £1.7m for Donnelly plus £1.2m to finance director Abid Ismail – has never been convincingly explained and came alongside sizeable salary increases for the pair, with Donnelly granted an extra £100,000 a year, lifting her salary to about £430,000.

Ismail’s base pay also increased by 30%, rising by about £70,000 to £300,000.In total, the pay of the top six executives more than tripled after the deal.Donnelly and Ismail have since left City & Guilds without “any financial settlement”.Lawyers acting for Donnelly and Ismail have added: “As we will shortly be commencing litigation against City & Guilds Limited … neither we nor [Donnelly or Ismail] will be making any further comment.”
cultureSee all
A picture

Reflections on the Festival of Britain | Letters

Celebrating the legacy of the Festival of Britain 75 years on by considering “how art can bring people together in the darkest times” is a fine sentiment (Editorial, 1 May). But far too many in this country have no opportunity to share in that legacy. We need to recognise that this country is a very different place to that of 75 years ago – it is divided and more diverse. We are now a multicultural nation – but a fractured one.A possible solution to the many racist and prejudiced attitudes we see around us is to have another festival of Britain, but with a very different focus

A picture

‘Tisio peint? Or: Do you fancy a pint? | Letters

I was delighted to read Phil Coughlin’s nostalgic account of Spike Milligan’s border-straddling pub in Puckoon (Letters, 1 May).But, here in Wales, we have the real thing in the little village of Llanymynech in Powys, where the border between two nations goes through the Bradford Arms hotel. Sunday drinking was illegal in Wales until 1961, so customers would crowd into the private bar, which, being to the east of the border, was not under Welsh drinking laws. For the rest of the week, most customers were more comfortable in the public bar, on the west side of the border.Nowadays you can drink in whichever bar you like, and no, people will not start speaking Welsh the moment you go in

A picture

Colbert on McDonald’s supply chain concerns: ‘Perhaps this will finally show Trump the true cost of war’

Late-night hosts covered the ongoing war in Iran and how the Trump administration is refusing to focus on rising gas prices back in the US.On The Late Show, Stephen Colbert told viewers it was day 69 of the war with Iran and despite Trump’s “one-page peace offer” it remains ongoing.Republicans are hoping to get a deal before the midterms with more than eight out of 10 Americans struggling to cope with rising gasoline prices. “The other two Americans couldn’t talk right now because they were busy sucking gas out of their neighbour’s Subaru,” he said.The war is also affecting other supply chains with the McDonald’s CEO warning this week that it might affect the burger chain’s business

A picture

Historic Oxford cinema under threat as Oriel College refuses to extend lease

The survival of one of the UK’s oldest independent cinemas is under threat while its landlord, the University of Oxford’s Oriel College, refuses to extend its lease to allow what its director says are vital renovations.The Ultimate Picture Palace in east Oxford opened in 1911, and has entertained generations of students and residents, including the Oscar-winning director Sam Mendes. It sells tickets for its 106 seats through an old-fashioned box office window to patrons queueing on the street, and its screen is behind a manually opened curtain.After decades of instability, the UPP, as it is known by locals, recently became a community-owned business when more than 1,200 supporters raised funds to keep the cinema operating in the Grade II-listed building.But plans to secure its long-term future have been dashed by Oriel College’s reluctance to approve an extension that would allow further investments and renovations to take place

A picture

Jimmy Kimmel on Trump: ‘His list of threats is now longer than Kash Patel’s bar tab’

Late-night hosts discussed the Trump administration’s confusing messaging about the war in Iran and why fruit-flavoured vapes have suddenly become a Republican priority.On Jimmy Kimmel Live! the host spoke about the conflict in Iran and how the strait of Hormuz is still to be reopened.While Trump claims that the US is close to a deal, Kimmel said it was “still very much in flux, as in what the flux are we doing over there?”Trump has been issuing more threats this week, which led Kimmel to joke that “his list of threats is now longer than Kash Patel’s bar tab”.It’s meant that gas prices are still sky high, with California experiencing the highest in the country.This week will also see Marco Rubio being sent to “make nice” with the pope including asking him “why God didn’t answer his prayers for smaller ears”

A picture

Arthur Miller opens up about marriage to Marilyn Monroe in newly unearthed recordings

He was one of the greatest playwrights of the 20th century and she was one of the greatest actors. In newly unearthed recordings made over a period of nearly three decades, Arthur Miller opened up about his short-lived marriage to Marilyn Monroe, saying she wanted a husband who was a “father, lover, friend and agent,” and the child she longed for would have been an “additional problem”.In taped conversations with his friend and biographer Prof Christopher Bigsby, Miller said he had felt “death was always on her [Monroe’s] shoulder – always”. He had believed that if he did not “take care of her life” she would come to a “catastrophic end”.“One time I brought doctors to pump her out because she had swallowed enough stuff [drugs] to kill her,” he said