- CTM has won 22 new government contracts worth nearly £250 million since August.
- The company says UK clients may have been overcharged by up to £118 million.
- Australian regulators are now investigating the company and its directors.
Corporate Travel Management (CTM), the Australian company behind the Bibby Stockholm asylum barge contract, has continued to secure major UK government contracts despite admitting it may have overcharged British public sector clients by as much as £118 million.
The Brisbane-based travel and accommodation provider has been awarded 22 new public sector contracts worth around £247 million since August, according to data compiled by Tussell Research. The fresh deals have raised questions about government procurement practices as authorities continue reviewing CTM's past billing arrangements.
New deals keep flowing
Among the contracts awarded since the controversy emerged are deals worth £170 million from the Ministry of Justice, £18 million from the Department for Education, £10.8 million from North Yorkshire Council and £2 million from the Home Office.
The company has secured approximately £4.2 billion in UK public sector contracts over the past decade, making it one of the government's most significant outsourcing partners.
CTM has been suspended from trading on the Australian Securities Exchange since August after identifying what it described as "erroneous billing" involving UK clients. The company initially estimated the issue at around £80 million. However, a forensic audit carried out by KPMG later increased the figure to as much as £118 million.
The overbilling is understood to be largely linked to hotel quarantine contracts awarded during the Covid-19 pandemic.
CTM has begun repaying affected government departments, including the Cabinet Office. However, discussions over final settlements are still ongoing, and reports have suggested additional compensation claims could follow.
A UK spokesman for CTM reportedly said the remediation process with affected customers was progressing but had not yet been finalised.
The Home Office remains CTM's largest UK government customer. Over the past decade, the department has awarded the company ten contracts worth around £2.4 billion, including a £1.6 billion agreement connected to accommodation services involving the Bibby Stockholm asylum barge.
The vessel, moored in Dorset before being decommissioned in 2024, became one of the most controversial symbols of Britain's asylum policy. It attracted criticism over living conditions, safety concerns and the death of an Albanian asylum seeker in 2023.
A parliamentary committee reportedly said it was "disheartened" by some of the conditions observed during a visit to the barge.
Other major government clients include the Scottish Government, which awarded contracts worth £421.9 million, the Department for Work and Pensions with £209 million, the Ministry of Defence with £190 million and the Environment Agency with £100 million.
The Home Office said in April that its internal review into CTM contracts remained ongoing and that taxpayer funds owed to the government would be recovered.
Pressure grows on both sides of the world
The scrutiny facing CTM is no longer limited to Britain. Australia's corporate regulator, the Australian Securities and Investments Commission (ASIC), has confirmed investigations into the company, its directors and auditor PwC over potential regulatory breaches.
The company has also undergone significant leadership changes. Former UK chief executive Michael Healy was dismissed in December after what CTM described as a breach of contract. The company later alleged that client agreements may have been falsified. Healy has not publicly responded to those allegations.
Founder and chief executive Jamie Pherous stepped down in February as the company attempted to move beyond the controversy.
Critics argue the continued flow of government contracts raises broader questions about procurement oversight. John O'Connell, chief executive of the TaxPayers' Alliance, reportedly said it was "staggering" that a company accused of overcharging taxpayers by such large amounts had continued to receive substantial public contracts.
CTM is expected to publish its audited financial results by the end of June as it seeks to resume trading on the Australian stock market.
