Corporate Travel Management is refunding clients after failing to pass on travel supplier margins and rebates. (Supplied: Corporate Travel Management)
Corporate Travel Management is in the process of refunding customers after pocketing tens of millions of dollars in margins and rebates that should have been passed onto clients.
It's the latest headache for Corporate Travel, after the ABC earlier this month revealed a massive overcharging scandal relating to refugee accommodation in the UK.
New chief executive Ana Pedersen says almost 80 per cent of the refunds have been agreed to or are near finalisation.
An Australian travel giant arranging trips for governments and big business is in hot water after pocketing tens of millions of dollars in margins on air tickets and rebates from suppliers.
Corporate Travel Management is now refunding the amounts to customers because contracts obliged the company to hand on some of this money to clients. For other customers, the problem is that contracts did not spell out what to do with the margins and so the cash is being handed back.
The method of overcharging was revealed in an announcement from Brisbane-based Corporate Travel to the share market and brings the total of remediation to almost $246 million.
Corporate Travel Management provides travel services to big businesses and governments. (Supplied)
It is the latest installation of an imbroglio involving the sector repaying clients, with the ABC earlier revealing a secret government audit that warned of methods of overbilling.
This latest overcharging at Corporate Travel is also separate to a massive overcharging scandal that had engulfed the company's dealings with the UK government for a refugee accommodation program.
As the ABC revealed earlier this month, Corporate Travel's problems in the refugee contract included it invoicing the UK government more rooms than a hotel actually had, double-billing on some hotels, or charging for exclusive use of hotels when no exclusivity existed.
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Corporate Travel's new chief executive, Ana Pedersen, said almost 80 per cent of refunds had been agreed to or were near finalisation.
"We recognise this has been a challenging period for investors, clients, partners and our people, and we are grateful for their ongoing support and confidence," she said.
