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Auditor demands private prison company repay $7.4 million

JACKSON, Miss. — State Auditor Shad White announced his office has issued civil demands totaling more than $7.4 million against Management & Training Corporation and has referred the matter to the Mississippi Attorney General’s Office for enforcement, his office said.

The auditor’s investigation began after allegations that MTC did not provide the prison staff required by its contracts with the state. Investigators found MTC failed to provide the minimum mandatory staff to ensure the safety of inmates and prison employees but was paid as if it had, the office said.

White’s office issued a $462,299.32 demand for improper staffing credits invoiced to the Mississippi Department of Corrections for the operation of the East Mississippi Correctional Facility, a $959,240.06 demand for improper staffing credits for the Marshall County Correctional Facility and a $6,002,027.92 demand for improper staffing credits for the Wilkinson County Correctional Facility.

Auditor White said, “This is one of the largest civil demands made in the history of the Auditor’s Office.” He added, “We’re now turning this case over to the AG’s Office for enforcement to ensure accountability for taxpayers, and I hope they will litigate the case immediately.” He also said, “I don’t care how big of an out-of-state company you are or how many campaign donations you make to the other politicians, if you owe taxpayers money because you failed to live up to a contract with government, we will demand you pay it back. No free rides on the backs of taxpayers.”

Management & Training Corporation is a private company that operates correctional facilities under contract with state and federal governments. Suspected fraud can be reported to the auditor’s office by clicking the red button on the auditor’s website or by calling 1-(800) 321-1275 during normal business hours. We will provide more information as it becomes available.

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