Corporate Travel Management (CTM) has significantly increased its estimated revenue reversal, now expecting £118 million ($222.8 million) due to widespread misconduct uncovered within its UK operations. The Brisbane-headquartered company, a global travel management firm assisting businesses and governments with travel and logistics, disclosed the escalating financial fallout this week. This revised figure, up from an earlier estimate, underscores the severity of issues linked to former UK chief executive Michael Healy, whose employment was terminated in late 2025.
The scandal traces back to April 2021 when Healy, then a general manager, was instrumental in managing lucrative UK government contracts, including the complex repatriation of staff from the Kabul embassy. By late 2022, internal concerns emerged regarding a £54.6 million discrepancy between amounts charged to the British government and actual payments made to hotels. A subsequent forensic investigation by KPMG, prompted by potentially unauthentic letters meant to settle disputes, confirmed widespread misconduct. This included failing to pass on customer refunds, retaining overpayments, amending contracts, and unjustified overcharging.
The revelation of the expanded revenue reversal highlights substantial governance and risk control failures at CTM. Questions are being directed at the board’s oversight and disclosure practices under Chairman Euan Crouch and former Chief Executive Jamie Pherous, particularly regarding why issues flagged in late 2022 were not more thoroughly addressed or disclosed earlier. Financially, CTM faces a significant challenge, with the $222.8 million in reversals dwarfing its current cash reserves and undrawn debt. The company aims to mitigate this impact through prior repayments, tax rebates, negotiation with customers, and implementing payment plans for refunds. Despite this, CTM expresses commitment to transparency and aims to relist on the ASX by the end of June, with its board indicating a review of its composition.
