The overcharge estimate was revised to £118 million on Thursday, up from £54.6 million, after a forensic investigation by KPMG found further overcharging or retained funds. CTM knew as far back as 2022 that it had overcharged UK clients by £54.6 million, and the board believed the problem had been resolved with letter agreements to repay the funds. However, in late November, CTM became aware that the letter agreements may not be authentic.
Leadership changes have followed the revelations. CTM's former UK chief executive Michael Healy stood down in November and was dismissed in December for breach of contractual obligations. CTM founder and CEO Jamie Pherous retired in February. A review found that under Healy and Pherous's leadership, CTM had charged the government almost £54.6 million more for quarantine hotel rooms than it was paying by late 2022. CTM also ran the Bibby Stockholm asylum barge until it was decommissioned in November 2024.
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.
The Home Office is conducting an internal investigation into the overspend. CTM is negotiating commercial arrangements to refund the money. Acting Chief Executive Ana Pedersen said in a statement, "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." Chair Ewen Crouch added, "Significant changes have been implemented within the UK business, particularly across financial controls and operational processes."
Significant changes have been implemented within the UK business, particularly across financial controls and operational processes.