Investors and corporate travel professionals are watching closely as the much-publicised investigation continues into accounting issues at Corporate Travel Management (CTM).
An ongoing review by KPMG found CTM’s UK business had overcharged clients to the tune of £77.6 million, with irregularities dating back to 2023.
In the latest development, CTM looks set to be removed from the Australian Securities Exchange 200 Index later this month.
According to the latest quarterly rebalance from S&P Dow Jones Indices, which measures the performance of the 200 biggest ASX-listed companies, CTM is one of six companies expected to be dropped from the Index on December 22.
It comes after the UK and Australian governments, both key clients of CTM, launched their own investigations, with the UK Government saying that any taxpayer money owed will be recovered in full.
Brisbane-based CTM has been responsible for arranging temporary accommodation for asylum seekers, including the controversial Bibby Stockholm barge project. It has already agreed to pay back the £77.6 million discovered as part of the KPMG review.
Michael Healy, CTMC’s UK and Europe CEO, has been suspended on full pay pending the outcome of the investigation.
CTM Global Chief Operating Officer, Eleanor Noonan, is acting as interim Chief Executive Officer for CTM UK and Europe during the suspension.
In a statement issued at the end of November, CTM said it has met with impacted customers and begun a review process which is expected to continue into 2026 and will determine the amount of any refunds that are due.
It said it will undertake an external governance review to identify why the discrepancies were not previously identified and resolved earlier. It has also started a comprehensive review of financial processes and record keeping in the CTM UK group.
A suspension of trading on the ASX, issued on September 1, remains in place.
CTM declined to add any further comment at this stage.
