The company that manages the Bibby Stockholm barge used to house asylum seekers has been granted a £100m contract with the Department for Environment, Food and Rural Affairs.
It is the latest large government contract given to the Australian company Corporate Travel Management (CTM). The government was heavily criticised by the National Audit Office for its £385m contract with CTM to manage quarantine hotels during the pandemic, which cost the taxpayer £400m including £100m in unpaid room bills and fraud.
Defra has refused to say exactly what the new contract is for, stating only that it will be used for travel and accommodation for staff.
CTM has a two-year, £1.6bn, contract to manage the Bibby Stockholm, which is moored in Portland, Dorset. The barge has frequently made headlines, including recently with the suspected suicide of Leonard Farruku, an Albanian asylum seeker, onboard in December.
Deadly legionella bacteria was also discovered on the vessel the same day asylum seekers were first moved onboard, and the Fire Brigades Union has warned that the barge, which was reconfigured to accommodate twice the number of people it was originally designed for, was a potential “deathtrap”. It is the subject of a legal challenge relating to planning rules for the floating structure by the mayor of Portland, Carralyn Parkes.
A National Audit Office investigation found that the company’s £385m contract with the Department of Health and Social Care to provide quarantine hotels for incoming travellers to the UK during the Covid pandemic had resulted in almost £100m in unpaid room bills and fraud.
Defra declined requests to provide a breakdown of what the £100m would be spent on over the next three years, nor how many staff would benefit from hotels and transport provided by CTM. It is understood this is a new contract awarded under the Crown Commercial Services framework.
A Defra spokesperson said: “Large organisations have corporate travel and accommodation contracts procured in a way to ensure value for money for taxpayers.”
Defra sources said all government contracts, including this one, must follow strict procurement regulations before being awarded.
The published documents relating to the contract are heavily redacted, with even the information about social value commitment and the frequency of progress reports blacked out. The Defra contract covers a variety of arms-length bodies, including the Environment Agency, Natural England and the Animal and Plant Health Agency.
According to a report in the Sydney Morning Herald, controversy over the Bibby Stockholm barge has been damaging for CTM. Last month, the travel group’s founder and chief executive, Jamie Pherous, admitted the company might not make any money out of the controversial Bibby Stockholm deal. A significant downgrade of its earnings, due in part to the failure of the UK contract, triggered a recent 20% share price plunge.
