Tugboats towed the Bibby Stockholm away from Portland, England, on 30 January 2025. The barge had been operated by CTM to house asylum seekers. The Australian company that ran the Bibby Stockholm asylum barge has admitted it overcharged the British government by £118 million.
Overcharging Revelation
Corporate Travel Management (CTM) said its auditor discovered evidence of “erroneous billing” of its UK clients, increasing the estimated amount owed to the government by £40 million. The company stated in an announcement to the Australian stock exchange that it is “negotiating commercial arrangements” to refund the money.
Previous Estimates
CTM, which provided hotel rooms during the pandemic and accommodation for asylum seekers, has faced difficulties recently due to irregularities in its UK accounts that led to the suspension of its shares. The government contractor revealed it knew as far back as 2022 that it had overcharged UK clients by £54.6 million. In November 2025, it announced total overcharging of £77.6 million, then revised that figure up to £118 million on Thursday.
Authenticity Concerns
The board believed the issue had been resolved with arranged letter agreements to repay the overcharged funds. However, in late November, it “became aware of a suggestion that the letter agreements may not, in fact, be authentic,” contradicting the position understood by the board.
Leadership Changes
CTM’s former UK chief executive, Michael Healy, stepped down in November and was dismissed in December for “breach of contractual obligations.” Founder and group CEO Jamie Pherous retired in February. A review found that under their leadership, CTM had overcharged the government nearly £54.6 million for quarantine hotel rooms by late 2022.
Forensic Investigation
A forensic investigation by KPMG auditors uncovered further instances where CTM overcharged or retained funds that should have been refunded, bringing the total to £118 million. Acting CEO Ana Pedersen said the problems were isolated to the UK business, adding that “the measures we have taken in the UK business to date have been extensive and thorough, and we will continue to take the necessary action.”
Chairman Ewen Crouch noted that “significant changes have been implemented within the UK business, particularly across financial controls and operational processes.” He added that the company aims for its shares to continue trading on the stock exchange this year.
Background on CTM
CTM, headquartered in Brisbane, Australia, employs about 3,000 people worldwide. It has been a major UK government contractor and operated the asylum barge Bibby Stockholm, moored at Portland Port in Dorset until its decommissioning in November 2024. The barge made headlines, including over the death of 27-year-old Leonard Farruku, who died in his shared cabin bathroom in 2023; an inquest concluded suicide.
Home Office Response
A Home Office spokesperson said an internal investigation into the overspend with CTM is underway. “We have already recouped over £70 million so far from asylum accommodation contracts which were not delivering 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 every asylum hotel.”
