Corporate Travel Management (CTM), led by chief executive Jamie Pherous, has agreed to an independent audit requested by the Australian government after revelations the company overcharged its UK clients by $162 million, as uncovered by KPMG.
Pherous, who has refused to step down, now faces intensifying pressure from Britain’s Cabinet Office and the Greater London Authority, both of which are investigating the overcharging.
The UK Home Office has also confirmed it is caught up in the “appalling” scandal, after awarding CTM contracts worth more than £2.1 billion to house asylum seekers.
Australia’s Department of Finance said it had reminded CTM of its reporting obligations and requested further information.
It confirmed CTM had “agreed… to undertake an independent audit to provide validation that there is no overcharging or behaviour not in line with CTM’s obligations,” with the review expected in the first half of 2026.
CTM shocked investors last week by withdrawing a previous market update, delaying its full-year results, and extending a trading halt into 2026.
Chairman Ewen Crouch has pledged full refunds to affected clients but declined to explain how the overcharging occurred.
Industry figures said the revelations had rattled the corporate travel sector. Flight Centre boss Graham Turner said “there were probably some clients looking to jump ship,” adding, “I do feel for Jamie.”
Investors, meanwhile, reacted with alarm. Wilson Asset Management’s Oscar Oberg called the update “a shock” and “very disappointing”, while Forager Funds’ Steve Johnson said uncertainty now surrounds whether the issues are confined to the UK: “Who would know at this point? I would imagine every client, every investor is asking questions.”
CTM shares last traded at $16.07 and are expected to take a significant hit when trading resumes.
Source: The Advertiser.
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