The Australian company that operated the Bibby Stockholm asylum barge has acknowledged overcharging the British government by £118 million. Corporate Travel Management (CTM) revealed that its auditor discovered evidence of erroneous billing to UK clients, increasing the estimated amount owed by £40 million.
Refund Negotiations Underway
In a statement to the Australian stock exchange, CTM said it is negotiating commercial arrangements to refund the money. The company, which provided hotel rooms during the pandemic and accommodation for asylum seekers, has faced difficulties after irregularities in its UK accounts led to a suspension of its shares.
Timeline of Overcharging
CTM has known since 2022 that it overcharged UK clients by £54.6 million. In November 2025, it announced a total of £77.6 million in overcharges, which was revised to £118 million on Thursday. The board believed the issue was resolved with letter agreements to repay the funds, but in late November, it became aware that those agreements might not be authentic.
Management 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 charged the government nearly £54.6 million more for quarantine hotel rooms than it was paying by late 2022. A KPMG forensic investigation uncovered further overcharges or retained funds, bringing the total to £118 million.
Acting group CEO Ana Pedersen stated that the problems were isolated to the UK business, and extensive measures have been taken. Board chair Ewen Crouch noted significant changes in financial controls and operational processes in the UK business, aiming for shares to continue trading this year.
Background on CTM and the Bibby Stockholm
CTM, headquartered in Brisbane, Australia, employs about 3,000 people globally. It was a major UK government contractor and operated the Bibby Stockholm asylum barge, moored at Portland Port in Dorset until its decommissioning in November 2024. The barge gained notoriety after the death of Leonard Farruku, a 27-year-old who died by suicide in his cabin in 2023.
A Home Office spokesperson confirmed an internal investigation into the overspend, noting that over £70 million has already been recouped from asylum accommodation contracts that did not deliver value for money. Changes have strengthened contract management and saved £700 million in hotel costs alone, as the government works to close all asylum hotels.
