Corporate Travel Management faces £100 million refugee billing scandal as auditors raise disclosure concerns

A presentation shows that Corporate Travel Management invoiced the UK government for far more refugee accommodation than hotels actually provided, including duplicate bills and charges for exclusive contracts that were not exclusive. The discrepancy, estimated at nearly £50 million, was flagged in a 40-page audit report by PwC in 2023, which recommended that directors disclose the matter to the market. The company later claimed a secret agreement with the Home Office would allow it to retain £22 million while refunding £28 million through non-cash measures, though the authenticity of the related letters is now in doubt.

Auditors disputed the classification of the £22 million as revenue and argued the £28 million liability should be recorded outside “client payables,” a note that ultimately did not appear in the signed accounts. Analysts criticized the lack of earlier disclosure, noting the sum represents a sizable portion of Corporate Travel’s cash and earnings. The firm, which also secured a new £28 million UK contract for Afghan resettlement, is now revising accounts that could erase up to £128 million in revenue from 2019-2026.