Bibby Stockholm asylum barge firm overcharged UK by £118m

Friday, April 24, 2026

Australian company Corporate Travel Management has admitted to overcharging the UK government by £118 million for asylum accommodation and quarantine hotel contracts, a figure more than double previous estimates. This revelation follows auditor findings and leadership upheavals within CTM, prompting ongoing repayment negotiations and government investigations into contract management reforms.

An Australian firm that managed the Bibby Stockholm asylum accommodation barge has acknowledged overcharging the UK government by £118 million, significantly higher than previously reported figures. Corporate Travel Management (CTM) revealed the updated total following an auditor’s findings that uncovered additional "erroneous billing" affecting its UK contracts.

CTM, which provided quarantine hotel rooms during the COVID-19 pandemic as well as housing for asylum seekers, initially disclosed in 2022 that it had overcharged UK clients by approximately £54.6 million. The company later revised this figure to £77.6 million in November 2023, before its latest statement increased the amount to £118 million. The firm is currently negotiating with the UK government to arrange the repayment of the funds.

The overcharging issue has persisted despite what CTM described as “letter agreements” intended to secure returns of the excess payments. However, the company said it became aware in November 2023 of questions regarding the authenticity of these agreements, conflicting with the board’s previous understanding.

CTM’s UK operations have undergone significant leadership changes amid the controversy. Michael Healy, the former UK chief executive, resigned in November and was dismissed the following month for breach of contractual obligations. Additionally, Jamie Pherous, founder and group chief executive, retired in February 2024. Under their leadership, an internal review had found irregularities surrounding payments for quarantine hotels by late 2022.

Further forensic investigation by KPMG auditors identified additional instances of overcharging or retention of funds that should have been reimbursed, leading to the revised total of £118 million. Acting group CEO Ana Pedersen stated that the issues were confined to the UK business and affirmed the company was implementing comprehensive corrective measures going forward.

CTM, headquartered in Brisbane, had been a key government contractor in the UK, operating the Bibby Stockholm barge moored at Portland Port in Dorset until its decommissioning last November.

A Home Office spokesperson confirmed an internal probe into the overspending with CTM and reported having recovered over £70 million related to asylum accommodation contracts deemed poor value. The government official added that recent contract management reforms had delivered savings of £700 million on hotel costs and aligned with efforts to eliminate asylum hotel accommodations entirely.