Mississippi auditor demands private prison company repay $7.4 million

JACKSON, Miss. — Mississippi State Auditor Shad White announced today that his office has issued civil demands totaling more than $7.4 million to Management & Training Corporation, a private prison operator. The demands have been referred to the Attorney General’s Office for enforcement in court, White said.

White described the demand as one of the largest in the history of the Auditor’s Office. He called on the AG’s Office to litigate the case immediately to ensure accountability for taxpayers.

The investigation into MTC began after allegations that the company failed to provide the staff required under its contracts with the state. White’s office found that MTC did not supply the minimum mandatory staffing levels needed to ensure safety at the facilities but was paid as if it had.

The auditor issued demands for repayment related to three prisons: $462,299.32 for improper staffing credits at the East Mississippi Correctional Facility, $959,240.06 for the Marshall County Correctional Facility, and $6,002,027.92 for Wilkinson County Correctional Facility.

White emphasized that no company, regardless of size or political contributions, is above the law. “If you owe taxpayers money because you failed to live up to a contract with the government, we will demand you pay it back,” he said. “No free rides on the backs of taxpayers.”

Suspected fraud can be reported to the Auditor’s Office through its website or by calling 1-800-321-1275 during business hours.

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