The point is not just the money. City & Guilds was sold out of a charitable structure into private ownership in October 2025, leaving trustees, regulators, executives and the new owner each with a different account of who knew what and when. PeopleCert is now seeking recovery of £1.7mn from Donnelly and £1.2mn from Ismail, according to the Guardian and FE Week, while the Charity Commission is separately examining the sale and the information available to trustees.
The Guardian reported that PeopleCert's internal investigation found Donnelly and Ismail "directly authorised and paid bonuses to themselves" totalling nearly £3mn combined. FE Week reported that PeopleCert said the payments were made without the knowledge or authorisation of PeopleCert, the City & Guilds board or City & Guilds London Institute, the charity that previously owned the business.
Donnelly and Ismail reject that account. Lawyers for the two former executives told the Guardian their clients had acted reasonably and honestly, and said evidence would show the buyer, seller and advisers were involved in structuring and approving the bonuses. FE Week reported the same broad denial, including the executives' position that they had evidence to support their case.
Table: PeopleCert investigation findings by recipient group
| Recipient group | Reported amount | PeopleCert position | Recovery status reported |
|---|---|---|---|
| Kirstie Donnelly | £1.7mn | Payment allegedly unauthorised | PeopleCert intends to seek recovery |
| Abid Ismail | £1.2mn | Payment allegedly unauthorised | PeopleCert intends to seek recovery |
| Serving executive leadership team members | Not itemised in reporting | No finding of wrongdoing by the wider leadership team reported by the Guardian | PeopleCert will request repayment from serving executive leadership members |
| About 60 other colleagues | About £2mn | Recipients were not fully aware or instrumental, according to PeopleCert's investigation as reported by the Guardian and FE Week | PeopleCert does not intend to recover those payments |
Source: Guardian and FE Week reporting on PeopleCert's internal investigation, June 2026.
That split matters because it separates the legal dispute over two named executives from the broader treatment of staff who received money through the same alleged scheme. FE Week reported that PeopleCert would ratify about £2mn in payments to around 60 more junior colleagues because the investigation concluded they were neither fully aware of nor instrumental in the scheme. The reporting does not itemise the amount paid to serving executive leadership team members, though PeopleCert said it would ask serving ELT members to repay their bonus payments in full.
FE Week reported that PeopleCert's investigation was carried out by a committee of non-executive directors led by Michael Milanovic, chair of PeopleCert subsidiary LanguageCert, with support from legal advisers Balfour+Manson. It also reported that an appeal process led by City & Guilds non-executive director Richard McCarthy did not uphold appeals against dismissal decisions. Those process details are material because the former executives are contesting the central finding, and PeopleCert's next step appears to be recovery rather than merely public censure.