Auditor demands private prison company repay $7.4M to taxpayers

VICKSBURG, Miss. (VDN) — State Auditor Shad White announced over $7.4 million in civil demands to Management & Training Corporation (MTC). The demands have also been referred to the Attorney General’s Office for enforcement in court.

“This is one of the largest civil demands made in the history of the Auditor’s Office,” said Auditor White. “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.”

The Auditor’s Office started investigating MTC when allegations arose that MTC was not providing the prison staff required by their contract with the state. Investigators found MTC failed to provide the minimum mandatory staff to ensure the safety of inmates and prison employees but were paid as if they had.

White 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 operation of the Marshall County Correctional Facility, and a $6,002,027.92 demand for improper staffing credits for the operation of the Wilkinson County Correctional Facility.

“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,” said White. “No free rides on the backs of taxpayers.”

Suspected fraud can be reported to the Auditor’s office at any time by clicking the red button at www.osa.ms.govor calling 1-(800) 321-1275 during normal business hours.