Bibby Stockholm asylum barge contractor admits overcharging UK government £118m
Summary
The Australian company Corporate Travel Management (CTM) admitted it overcharged the UK government by £118 million for services including asylum seeker accommodation. CTM is working to refund the money after an audit found billing errors and has made changes in its UK operations.Key Facts
- CTM overcharged the UK government by £118 million, up from an earlier estimate of £77.6 million.
- The company discovered the overcharges during an audit and is negotiating repayments.
- CTM provided hotel rooms during the pandemic and housing for asylum seekers, including running the Bibby Stockholm asylum barge.
- The UK part of CTM’s business faced financial irregularities, leading to share suspension and leadership changes.
- Former UK CEO Michael Healy was dismissed for breach of contract; founder Jamie Pherous retired.
- A KPMG forensic investigation uncovered more overcharging and unreturned funds.
- The UK Home Office is investigating the overspending and has already recovered over £70 million from related contracts.
- CTM says the problems are limited to its UK business and has improved financial controls and procedures there.
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