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How extraordinary. BAEC exists to promote loyalty from the individual – we all have a choice of carrier, even within corp policies.
It is 100% the normal thing to earn miles as the person flying, not the person paying.
Could I ask just how many years ago? It may have been part of the T&Cs of the corporate deal, or some dodgy bookings on the part of your corp TA, but I have never heard of miles being confiscated except in case of fraud or repeated manipulation (eg not flying final sector of exEU tickets).