Full Breakdown
Mississippi Auditor Demands $7.4 Million from Private Prison Operator for Staffing Failures
4/16/2026, 12:27:40 AM
Overview of the Demand
Mississippi State Auditor Shad White has issued a civil demand for $7.4 million against Management & Training Corporation (MTC), a private prison operator based in Utah. This demand arises from allegations that MTC failed to provide adequate staffing at three correctional facilities in Mississippi, namely the East Mississippi Correctional Facility, the Wilkinson County Correctional Facility, and the Marshall County Correctional Facility. White characterized this action as one of the largest civil demands in the history of his office, emphasizing the need for accountability to taxpayers.
Background of the Investigation
The investigation into MTC began over five years ago after allegations surfaced regarding the company's failure to meet staffing requirements stipulated in its contracts with the Mississippi Department of Corrections (MDOC). According to White, auditors found that MTC did not supply the minimum mandatory staff necessary to ensure the safety of inmates and prison employees, yet continued to receive payments for those staffing credits. In 2021, MTC had already repaid over $5 million to the state following an earlier probe into staffing shortages.
Breakdown of Financial Demands
The civil demand includes specific amounts for improper staffing credits at each facility: $462,299.32 for the East Mississippi Correctional Facility, $959,240.06 for the Marshall County Correctional Facility, and $6,002,027.92 for the Wilkinson County Correctional Facility. White has referred the case to the Mississippi Attorney General’s Office for enforcement, urging immediate litigation to recover the funds.
MTC's Response and Claims
In response to the auditor's announcement, MTC stated that it had offered to settle the matter for $4.5 million, which the company claims represents the principal owed plus reasonable interest and costs. MTC's vice president, Michael Bell, expressed disappointment at the auditor's decision to issue a press release rather than engage in further negotiations. The company maintains that it acted in good faith and has made significant payments to address previous issues, totaling over $5.9 million.
MTC argues that it has been in constant communication with MDOC regarding staffing challenges and has used available contract funds to enhance wages and recruitment efforts. The company claims that any delays or discrepancies in staffing were acknowledged by MDOC and that it has worked collaboratively to resolve these issues.
Criticism and Opposition
Critics of MTC point to a 2020 investigation that revealed the company had collected millions by charging the MDOC for vacant security positions that it was contractually obligated to fill. This has raised questions about the company's operational integrity and its handling of taxpayer funds. White's statement, “No free rides on the backs of taxpayers,” underscores the auditor's commitment to holding contractors accountable, regardless of their political contributions.
What's Next
The case is now set to proceed to litigation, as MTC has indicated it will allow the matter to go to court following the rejection of its settlement offer. The Attorney General's Office is currently reviewing the demand letters and preparing for potential legal action against MTC to enforce the repayment of the demanded funds.
