The Australian company that operated the Bibby Stockholm asylum barge has admitted it overcharged the British government by £118 million.
Corporate Travel Management (CTM) said its auditor had found evidence of “false billing” by its UK customers and increased its estimate of its debt to the government by £40m.
The company said in a statement to the Australian Stock Exchange that it was “negotiating commercial arrangements” to refund the money.
CTM, which has helped provide hotel rooms and accommodate asylum seekers during the pandemic, has struggled in recent months after irregularities in its UK accounts led to the suspension of its shares.
The government contractor said it knew as early as 2022 that it had overcharged its UK customers by £54.6 million. In November 2025, the company revealed that it had overcharged a total of £77.6 million, then revised the amount to £118 million on Thursday.
The Board considered that the problem could be resolved through written agreements with customers to repay the overcharged amounts. However, it said that in late November it “became aware of suggestions that the letter agreements may not be authentic.” It added: “This was contrary to the position understood and represented by the board.”
CTM's former UK chief executive Michael Healy resigned in November and was dismissed from the company in December for “breach of contractual obligations”. Jamie Pherous, the group's founder and chief executive, retired in February.
A review initially found that under her leadership, CTM had charged the government almost £54.6 million more for the quarantine hotel rooms by the end of 2022 than it paid.
A forensic investigation by KPMG auditors found additional incidents where CTM overcharged or withheld funds that should have been refunded. This brings the total to £118 million.
Ana Pedersen, the group's acting chief executive, said the problems were limited to the UK business. “The actions we have taken to date in the UK business have been comprehensive and thorough and we will continue to take the necessary actions,” she said.
Ewen Crouch, the company's chairman, said that “significant changes have been made to the UK business, particularly in financial controls and operations.”
He added that the company aims to have its shares listed on the stock exchange this year.
Headquartered in Brisbane, Australia, CTM employs around 3,000 people worldwide. It was a key contractor for the British government and operated the asylum barge Bibby Stockholm, which was moored in the port of Portland in Dorset until it was decommissioned in November 2024.
The barge has frequently made headlines, including for the death of Leonard Farruku, a 27-year-old who died in the bathroom of his shared cabin in 2023. An inquest concluded he died as a result of suicide.
A Home Office spokesman said it was conducting an internal investigation into overspending at CTM.
“We have already recovered over £70 million from asylum accommodation contracts that did not offer good value for money. Our changes have strengthened contract management and saved £700 million in hotel costs alone, as the Government works towards its commitment to close all asylum hotels.”
About the Author
