Migrant barge scandal

By the Editorial Team · Monday, September 21, 2026

The UK government awarded approximately £100 million in contract extensions to Corporate Travel Management (CTM), an Australian company recently involved in a £130 million overcharging scandal with government clients. Despite ongoing investigations and previous contract cancellations, these renewals demonstrate continued reliance on CTM for key public sector services while raising calls for greater transparency and accountability.

The UK government has come under scrutiny for awarding contract extensions worth approximately £100 million to Corporate Travel Management (CTM), an Australian travel company recently implicated in a £130 million overcharging scandal involving UK government clients. These contract extensions cover work with the Home Office, the Cabinet Office, and the Scottish government and were announced shortly after CTM resumed trading on the Australian Securities Exchange (ASX).

CTM is set to receive £65 million from the Home Office, £15 million from the Cabinet Office, and £25 million from the Scottish government over a 12-month period. The Home Office extension, which runs until August 31, 2027, includes services related to asylum-seeker accommodation, travel, and other associated functions. This comes despite the Home Office previously awarding CTM a £1.6 billion contract in 2023 to operate the Bibby Stockholm asylum barge, a contract later canceled by the Labour government after its election victory in 2024.

The Home Office confirmed that it had conducted an internal investigation into CTM’s overcharging and that it is actively recovering significant sums back to the taxpayer. The department also stated it had strengthened contract oversight to prevent a recurrence of such overspending. Meanwhile, the Cabinet Office’s contract extension, valid until August 2027, involves travel management and flight chartering services. The Cabinet Office noted ongoing discussions with CTM to arrange repayment of any outstanding funds. The Scottish government’s contract involves travel services for 93 public sector organizations.

CTM’s managing director, Ana Pedersen, described the contract renewals as evidence that CTM remains a trusted partner for major public sector clients in the UK, expressing the company’s commitment to continuing these working relationships. However, the company is currently under investigation by the Australian Securities and Investments Commission, focusing on potential breaches of directors’ duties related to the overcharging issue.

The controversy has prompted criticism from figures such as John O’Connell, chief executive of the TaxPayers’ Alliance, who called for greater transparency. O’Connell emphasized the need for the Home Office to publish its internal review before awarding further contracts to CTM, stating taxpayers have a right to know how much money has been recovered and why new contracts were granted amid unresolved questions.

CTM’s history includes a 12-month trading halt on the ASX linked to the scandal and a shake-up of its leadership. Michael Healy, the company’s UK chief executive, was dismissed in December 2025 over alleged contract breaches and possible falsification of client agreements, allegations he has not publicly addressed. In early 2026, CTM’s founder, Jamie Pherous, stepped down from the company.

Despite these developments, CTM has secured nearly 30 UK government contracts worth over £500 million since August 2025, illustrating the ongoing business relationship between the company and UK public sector entities even amid controversy.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.