Taxpayers just got handed another bill they didn't ask for. It turns out the Australian firm hired to manage the UK’s most controversial housing project, the Bibby Stockholm, has been helping itself to a lot more than its fair share. Corporate Travel Management (CTM) recently admitted that it overcharged the British government by a staggering £118 million.
If you're wondering how a company "accidentally" pockets over a hundred million pounds of public money, you're not alone. This isn't just a rounding error. It’s a massive failure of oversight that stretches back years. While we were arguing about the ethics of housing people on a floating barge, the contractors were busy inflating the invoices.
The anatomy of a £118m mistake
The sheer scale of this overcharging is hard to wrap your head around. Initially, the figure was thought to be around £54 million. Then it jumped to £77 million. Now, after a forensic investigation by auditors at KPMG, CTM has admitted the true damage is closer to £118 million.
Most of this mess comes from "erroneous billing" related to hotel contracts and the management of the Bibby Stockholm. CTM basically charged the Home Office significantly more for rooms than they were actually paying the hotels. They also held onto funds that should’ve been refunded to the state.
- The £54.6m COVID legacy: A huge chunk of the overspending started with the quarantine hotel program during the pandemic.
- The "Authenticity" Problem: The board thought they had agreements to pay the money back. In late 2025, they realized those agreements might not even be authentic.
- Systemic Failures: This wasn't a one-off. The auditors found instances of overcharging dating all the way back to July 2018.
Heads are rolling in Brisbane and London
You don't lose track of £118 million and keep your job. CTM’s UK chief executive, Michael Healy, was dismissed in late 2025 for "breach of contractual obligations." Not long after, the group’s founder and CEO, Jamie Pherous, announced his retirement.
The company’s shares on the Australian Stock Exchange (ASX) have been frozen since August 2025. Imagine being a shareholder and finding out the "revenue" your company reported was actually just overcharged taxpayer money that now has to be paid back. It’s a disaster for the firm’s credibility.
Honestly, the most frustrating part is that the Home Office only started sounding the alarm when the discrepancies became too big to ignore. It makes you wonder what else is slipping through the cracks in these massive private-sector contracts.
More than just a floating barge
The Bibby Stockholm became a symbol of a broken asylum system. It was meant to save money. The National Audit Office (NAO) previously warned that large sites like the barge would actually cost £46 million more than using hotels. When you add the £118 million in overcharging, the "cost-saving" argument for these projects completely falls apart.
The barge itself was plagued by problems from day one.
- Health Risks: Legionella bacteria was found in the water system almost immediately.
- Tragedy: The suicide of Leonard Farruku in 2023 highlighted the mental health toll of the living conditions.
- Safety: The Fire Brigades Union called it a "potential deathtrap."
The government finally pulled the plug on the barge in January 2025, but the financial cleanup is going to take a lot longer.
The struggle to get the money back
The Home Office says it’s already recouped about £70 million from various accommodation contracts, but the negotiation with CTM is still ongoing. CTM says they’ve refunded about £12.1 million so far. That leaves a massive hole.
The company is currently trying to negotiate "commercial arrangements" to pay back the rest. In plain English, they're trying to figure out a payment plan so they don't go bust while trying to return the money they shouldn't have had in the first place.
If you want to keep an eye on how your taxes are being spent (or misspent), start by looking at the transparency of these private contracts. The Home Office has promised "strengthened contract management," but we've heard that before.
Check the official government contract finder websites for any new deals involving CTM or its subsidiaries. If you're a taxpayer, you have a right to know who is managing these billions. Demand more than just "internal investigations" from your local MP. We need independent, public audits of every major private-sector contract signed during the last five years. The Bibby Stockholm was just the tip of the iceberg.
