Corporate Travel Management CEO stood down amid overcharging scandal

ABC NEWS (Australia)

A globe-trotting Australian business is in trouble. Corporate Travel Management is embroiled in an overcharging scandal, potentially worth more than $100 million. Daniel Ziffer explains.

Transcript

00:00Corporate travel management helps businesses move people around, and they're doing a bit

00:07of it themselves.

00:09In August, CTM shares were suspended from trading because there was an issue with the

00:13accounts.

00:14Today, the CEO of its European arm was stood down.

00:19The problem is the company appears to have overcharged clients around $150 million in

00:25recent years.

00:26That's about a third of European revenue that it's potentially got to give back.

00:32Shares remain suspended.

00:34The company says the circumstances and conduct are still being investigated by the board,

00:39and they won't be the only ones having a look.

00:42The only good news for CTM is the debt is in pounds, and the Aussie was flat against it

00:48today, meaning at the moment it won't cost them any more than $150 million and their reputation.

00:55The US markets were closed for Thanksgiving, mixed results in other global markets.

01:00Iron ore down, but still above that key US $100 a ton mark.

01:06And our market was flat today, but up 1.7% for the week.

01:12You can't trade corporate travel management shares at the moment.

01:15When you can, a solid chance you'll see them featured here, next to an arrow pointing down.

01:21And that's finance.

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