We've recently interviewed some candidates who we are fairly sure lied about their skills and experiences on their CVs. It is company policy to reimburse all reasonable travel expenses for a job interview. Candidates travel to Ireland, proceeding from the EU: many are from nearby Ireland/UK, but there are also candidates from Germany, Spain and Eastern Europe.

For some, the travel expenses might be a heavy burden, and would not have come to an interview if they had to pay for it themselves. Consider not only the distance home<-->Ireland, but the low salaries in certain countries.  

I am considering non-payment and discussing what we see as the candidate's lies as options.  How is this handled elsewhere?

EDIT: Other post by this user would indicate he is concerned about lies on the resume, not lies in the travel claims.