State auditor Shad White reveals Management & Training Corporation’s $5 million repayment to state

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State Auditor Shad White announced on Monday that the Management & Training Corporation (MTC), a private prison company, has returned more than $5.125 million to the state.

Initiating the investigation into MTC in 2021, White’s office pursued allegations suggesting that MTC failed to maintain the prison staff levels as stipulated in their agreement with the state. Despite not meeting the staffing standards, which ensured the security of both inmates and prison employees, MTC still received payments from the state as though they had met the obligations.

By November 2022, a preliminary analysis of one of the three prisons run by MTC in Mississippi resulted in White issuing a $1.9 million demand. The auditor’s promise to further probe into the other two MTC-operated prisons remained unbroken.

Last week’s substantial voluntary repayment by MTC to the Mississippi Department of Corrections marks a significant recovery, ranking among the largest in recent history. The State Auditor’s office previously facilitated a $55 million recovery from a prominent pharmacy benefit manager, a record-setting amount for any civil recovery steered by a Mississippi Auditor investigation.

White emphasized his office’s commitment to transparency, ensuring MTC’s remitted amount fully corresponds to what they owe to the state’s residents. “Every penny must be accounted for,” he affirmed.

The results from White’s November investigation are currently with the Mississippi Attorney General’s Office, which holds the jurisdiction to decide on the potential legal proceedings or prosecution of the case.