Candidsky staff raised collective concerns over 5 Villages governance before CEO exit

Months before the former chief executive of Manchester agency Candidsky resigned, 11 of its employees jointly signed a protected disclosure setting out concerns over payroll, pensions, supplier payments and how its parent company, 5 Villages Group, was being run.

Addressed to Don Iro, chairman of 5 Villages Group, and to the group board, the document was emailed directly to Iro in late 2025. It points to the extent of unease inside Candidsky after it was acquired earlier that year.

The 11 staff signed it electronically on 28 November 2025. That is understood to have been every member of Candidsky’s workforce at the time except one.

The disclosure came after a sexual harassment complaint against Iro, which has previously been reported and which he denies, and several months before David Vernon, then chief executive, departed in March 2026.

Questions about the disclosure and related matters were put to 5 Villages Group and Iro on Monday 17 August, with a deadline of noon on Wednesday 19 August. No substantive response had been received before publication.

‘A united workforce’

The signatories called themselves a “united workforce” and said their concerns related to “payroll, pensions, supplier payments, workplace culture, and group-level governance”.

They separated those concerns from how Vernon and the agency’s senior team ran the business, writing: “None of the issues raised in this letter relate to David’s or the SLT’s leadership or the internal management of Candidsky. Our concerns relate solely to the ownership, governance, and actions of 5 Villages Group and Donald Iro.”

Under the heading “Collective Loss of Confidence in 5 Villages Group”, staff said employees from several departments had each flagged worries over compliance, payroll and pension data, suppliers and the group’s communication, and that they had seen “repeated warning signs” and believed the group’s governance put their financial security and wellbeing at risk.

Iro said he would investigate

Emails show Iro personally acknowledged the disclosure after it was formally sent to him on 1 December.

He wrote: “I confirm receipt of your email and the contents therein.

“I take these concerns seriously and will investigate asap. Most of these issues are already on course for resolution.”

Iro also suggested an all-hands call, saying “most of these issues can equally be resolved via effective communication.”

Staff replied that they wanted a full written response before any meeting or call, to create “a full audit trail” for transparency and accountability.

On 16 December, more than two weeks later, the team followed up. “We’re just politely following up on a written response that addresses all the points we’ve made,” they wrote. “Appreciate there’s been some communication here and there on a few of the matters, but a full written response would help address everything in one go.”

Former employees say they never received a full written outcome. 5 Villages Group did not respond to questions about what investigation took place, what it concluded, whether staff received a formal response and what action followed.

Payroll concerns raised in 2025

The disclosure shows staff were formally raising concerns about Candidsky’s payroll by November 2025, which adds context to the timeline 5 Villages Group has previously given.

The group has acknowledged that salaries were delayed in parts of its businesses in April, May and June 2026 because of short-term cashflow pressures. It said: “There have been occasions in recent months when salary payments across parts of the 5 Villages Group have been delayed. These occurred at different points during April, May and June 2026 and arose from short-term cashflow pressures, including the timing of receipts from key customers.”

The disclosure does not show that salaries were paid late in 2025. It does show staff were already reporting a run of payroll problems months earlier.

The alleged problems included incorrect tax deductions, payslips that did not match up, National Insurance errors, absent employer pension payments and trouble accessing past payslips. They said this showed “a loss of confidence in group-level payroll governance”, and worried that payroll changes could lead to altered HMRC tax codes and staff having to pay back underpaid tax.

Pension contributions

The pensions section was especially detailed. Employees said that after contacting NEST they found contributions taken from their pay had not reached their pension accounts for several months, and employer contributions also appeared to be missing.

They said NEST had told them Candidsky’s direct debit had been deliberately cancelled, and questioned why contributions had been held up. They said they were considering going to The Pensions Regulator if the problem was not fixed straight away.

5 Villages Group has previously acknowledged that some pension contributions were paid later than intended and that some amounts were still outstanding. It has also said: “There have, however, been no enquiries or investigations by The Pensions Regulator or any pension provider.”

Further documentation includes a NEST letter dated 13 December 2025 that states: “We’ve reported Candidsky Ltd to The Pensions Regulator.” Other material suggests staff also contacted The Pensions Regulator themselves, and that a complaint went to The Pensions Ombudsman.

Correspondence also shows Iro wrote on 13 November that “ultimately I am accountable for Pensions” and that he would look into the matter “also with the pensions regulator”.

5 Villages Group was asked whether it wished to amend or clarify its earlier statement on regulatory involvement and whether all outstanding contributions have now been paid. It did not respond.

Suppliers and safeguarding

The disclosure went beyond payroll and pensions. Staff said suppliers had contacted them directly about overdue payments, some of which had gone to debt collection agencies, and that some supplier payment problems had affected their work and “put our clients and contracts at risk”.

Employees also raised concerns about safeguarding and HR governance after the acquisition. They praised Candidsky’s own leadership for taking wellbeing seriously, but said earlier events had led some to question “whether safeguarding and HR processes can operate independently and effectively while ultimate authority sits with 5 Villages Group rather than within Candidsky’s own governance structures.”

Those concerns came months after an internal HR process began following the sexual harassment complaint against Iro. He has always vigorously denied the allegations and unequivocally denies sexually harassing the former employee or behaving improperly towards her.

5 Villages Group has said the HR process did not reach a formal determination and no finding was made against Iro. He has acknowledged that personally arranging a private hotel meeting with the employee to discuss what he describes as a potential employment concern, and choosing that setting, was an “error of judgement”.

University assessment

Iro is pro-chancellor of Southampton Solent University, which has confirmed it started an ‘initial assessment’ after the reports.

It said it had been unaware of the complaint’s details and would deal with it through its usual processes. It later added: “Our procedures call for an initial assessment, followed by a further review if required. We have now begun that initial assessment.” It said it could not give more information while the process continues.

Policing role removed from biography

Following enquiries, the university has also taken down references in Iro’s online biography to his claimed role in policing oversight.

The biography had said Iro had been involved with the “Forces Strategic Independent Advisory Group (FSIAG)” and was “recently chair for the Custody Scrutiny Panel for Hampshire and Isle of Wight Police”.

Hampshire and Isle of Wight’s Office of the Police and Crime Commissioner (OPCC) said: “Mr Iro has never served on an OPCC-run body concerned with scrutiny of police custody in Hampshire and the Isle of Wight.” It added: “The OPCC Independent Custody Detention Scrutiny Panel (ICDSP) commenced in January 2024. Don Iro has never been a member of this panel.”

Hampshire and Isle of Wight Constabulary said: “We are unable to comment on an individual’s employment or volunteer status. The Office for the Police and Crime Commissioner took over responsibility for police custody within Hampshire and the Isle of Wight in 2024 and have already confirmed their position.”

The university said governors must declare other roles every year and that “the last time Mr Iro declared this role was for the 2021-22 academic year.” It added: “We have now updated his biography on our website.” Both references have since been removed.

Iro was asked, through 5 Villages Group and directly on several occasions, to set out exactly which policing body he chaired, when, who appointed him and whether he could provide evidence. No response was received before publication.

Website replaced by gambling page

Candidsky’s website also went down this week. On Monday, visitors to candidsky.com were shown an Indonesian-language gambling site branded “SLOT88” promoting online slot games. The page stayed up for several hours.

Buddhika Amis of Candidsky said at the time: “We are aware of the website issue. Our hosting provider is tracing the logs and investigating the cause. There has been no change to Candidsky’s trading status or operations.”

Earlier responses

5 Villages Group and Iro engaged at length during earlier stages of the reporting, and their responses, explanations and denials were published in detail. They were asked to respond to the collective disclosure, the payroll and pension material, the disputed policing role and the university assessment, but gave no substantive response before publication.

According to the group’s earlier statements, Candidsky is still financially viable, is neither in administration nor in any formal insolvency process, and should be back in profit within the current financial year. It has described a “challenging trading period”, admitted to tight cashflow, lost clients and departing staff, and said work is under way to rebuild the agency’s leadership, client base and market position.