Bibby Stockholm asylum barge contractor admits overcharging UK government £118m

The Australian company that ran the Bibby Stockholm asylum barge has admitted it overcharged the British government by £118m.

Corporate Travel Management (CTM) said its auditor had found evidence of “erroneous billing” of its UK clients, increasing its estimate of how much it owes the government by £40m.

The company said in a statement to the Australian stock exchange that it was “negotiating commercial arrangements” to refund the money.

CTM, which helped provide hotel rooms during the pandemic and accommodation for asylum seekers, has struggled in recent months after irregularities in its UK accounts triggered the suspension of its shares.

The government contractor has said that it knew as far back as 2022 that it had overcharged its clients in the UK by £54.6m. In November 2025, it announced it had overcharged by a total of £77.6m, then on Thursday revised that up to £118m.

The board believed the problem had been resolved with arranged letter agreements with clients to repay the overcharged funds.

However, it said that, in late November, it “became aware of a suggestion that the letter agreements may not, in fact, be authentic”. It added: “This contradicted the position understood and relied on by the board.”

CMT’s former UK chief executive Michael Healy stood down in November and was dismissed from the business in December for “breach of contractual obligations”. Jamie Pherous, the founder and chief executive of the group, retired in February.

A review initially found that under their leadership, CTM had charged the government almost £54.6m more for the quarantine hotel rooms than it was paying by late 2022.

A forensic investigation by auditors at KPMG found further incidents where CTM had overcharged or retained funds that should have been refunded. This has taken the total to £118m.

Ana Pedersen, who is the acting chief executive of the group, said the problems were isolated to the UK business.

“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,” she said.