JACKSON, Miss. (Queen City Newsfeed) — Shad White announced Monday that his office has issued more than $7.4 million in civil demands against Management & Training Corporation (MTC), a private company contracted to operate several Mississippi prison facilities.
According to the Mississippi Office of the State Auditor, the demands stem from an investigation into whether MTC failed to meet staffing requirements outlined in its contract with the Mississippi Department of Corrections. The case has now been referred to the Mississippi Attorney General’s Office for potential enforcement in court.
“This is one of the largest civil demands made in the history of the Auditor’s Office,” White said. “We’re now turning this case over to the AG’s Office for enforcement to ensure accountability for taxpayers.”
Breakdown of the Demands
The Auditor’s Office alleges MTC did not provide the minimum required staffing levels at three correctional facilities, while still billing the state as if those standards had been met. The civil demands include:
- $462,299.32 for the East Mississippi Correctional Facility
- $959,240.06 for the Marshall County Correctional Facility
- $6,002,027.92 for the Wilkinson County Correctional Facility
Investigators say the alleged staffing shortages could have affected safety for both inmates and prison employees.
White also emphasized accountability, stating that companies doing business with the state must meet their contractual obligations regardless of size or political influence.
MTC Responds, Disputes Claims
In response, MTC issued a statement disputing the Auditor’s findings and defending its actions. The company says it has already made substantial payments to address staffing concerns and worked in good faith with state officials.
MTC reports it voluntarily paid nearly $5.9 million to the state following internal reviews and discussions with auditors and MDOC. The company argues that the Auditor’s current demands are inflated and include more than $3.2 million in interest, which it claims resulted largely from delays and recalculations by the Auditor’s Office.
MTC also states that it offered $4.5 million last week to settle the dispute, an offer that was rejected.
“When questions were raised regarding staffing deficiencies and vacancy deductions, MTC acted in good faith,” said Michael Bell, vice president of MTC corrections. “We conducted our own review and voluntarily paid over $5.9 million.”
Ongoing Dispute Heads Toward Court
MTC maintains that staffing shortages were a widespread issue during the COVID-19 pandemic and says MDOC was aware of, and approved, adjustments made to address those challenges. The company says it reinvested contract funds into higher wages, bonuses, and recruitment efforts to improve staffing levels.
Despite those claims, the Auditor’s Office continues to pursue repayment through legal channels. With settlement talks stalled, MTC says it now expects the matter to move into litigation.
The company also confirmed it will continue operating its contracted facilities while the dispute plays out in court.
Reporting Suspected Fraud
The Auditor’s Office encourages the public to report suspected fraud involving state funds through its website or hotline during normal business hours.
As the case moves forward, the outcome could have significant financial and operational implications for both the state and private contractors working within Mississippi’s correctional system.
Photos courtesy of: Mississippi Department of Corrections and Mississippi State Auditor’s Office.
