Mississippi auditor demands $7.4 million from private prison contractor
Mississippi State Auditor Shad White announced Monday that his office has issued more than $7.4 million in civil demands to Management & Training Corporation, a private prison contractor. The demands have been referred to the Attorney General’s Office for enforcement, White said.
White described the move as one of the largest civil demands in the history of the Auditor’s Office. He said the case was handed over to the AG’s Office to ensure accountability for taxpayers. White added that he hopes the attorney general will pursue litigation immediately.
The Auditor’s Office launched an investigation into MTC after allegations surfaced that the company failed to provide the required staffing levels at three Mississippi prisons. Investigators found MTC did not supply the minimum mandatory staff to ensure safety but was paid as if it had. The office is seeking $462,299.32 for staffing credits at the East Mississippi Correctional Facility, $959,240.06 for Marshall County Correctional Facility, and $6 million for Wilkinson County Correctional Facility.
This is not the first time White’s office has investigated MTC. In 2021, the office began examining staffing issues, leading to a 2022 demand of $1.9 million and a 2023 voluntary repayment of about $5.1 million by MTC. White emphasized that the company would be held accountable regardless of its size or political contributions.
MTC responded Monday, stating that despite prior payments, the company received new demands from the Auditor’s Office in May 2025. The company said it had engaged in discussions and provided documentation, acknowledging some errors in calculations. MTC also claimed that staffing challenges in Mississippi, worsened by the COVID-19 pandemic, were addressed through negotiations with the Mississippi Department of Corrections, including efforts to increase wages and improve staffing.
According to MTC, it offered $4.5 million to settle the dispute, representing the principal owed plus interest and costs. However, the company said the Auditor rejected this offer and issued a press release, which MTC called unhelpful and unproductive. MTC Vice President Michael Bell criticized the Auditor for ignoring the company’s efforts to cooperate and said litigation is now the only option left for resolution.
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