Trustees at the City and Guilds of London Institute have been accused of “avoiding proper scrutiny and accountability” by delaying the launch of an independent inquiry into the charity’s sale of its commercial arm.
Members of the CGLI council last month overwhelmingly voted in favour of an investigation into the charity’s October sale of its training and awards arm to PeopleCert, a Greek language certification company.
The CGLI retained between £180m and £200m and transferred about 1,400 staff out of the charity as part of the sale, while PeopleCert has taken over the commercial arm under the name City & Guilds Limited.
The Charity Commission opened a statutory inquiry into the CGLI in January over concerns raised about the sale and bonuses awarded to the charity’s executives.
Concerns about the sale also led to CGLI council members forming the City and Guilds Action Group to call for an independent inquiry, which members voted in favour of at the CGLI’s annual meeting last month.
The charity has no obligation to launch an investigation after the vote but the move pressurises CGLI trustees to do as asked.
Neil Bates, a City and Guilds of London Institute fellow, said: “The City and Guilds Action Group is disappointed that the trustee board has taken more than a month to respond to the overwhelming vote of members calling for a fully independent inquiry into the catastrophic failures of governance that led to the sale of all the charity’s operating assets and the self‑enrichment of its former senior executives.
“It appears that trustees continue to seek ways to delay and avoid proper scrutiny and accountability.
“We will, of course, meet with the new chair and trustees, but we will not be deflected from our mandate, given unequivocally by the members, to secure answers to the serious questions surrounding the sale of this historic Royal Charter charity to private overseas investors.”
A spokesperson for City and Guilds said the charity’s trustees remained committed to “working constructively” with its 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,” the spokesperson said.
“Our priority is to safeguard the integrity and future of the institute.”