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Bibby Stockholm asylum barge contractor admits overcharging UK government £118m

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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