State Auditor Shad White’s office is demanding $7.4 million from a private prison company over alleged staffing failures.
A civil demands notice has been issued to Management and Training Corporation (MTC) by White’s team and referred to Mississippi Attorney General Lynn Fitch’s office for enforcement in court, per a Monday press release.
The auditor’s office began investigating MTC when allegations arose that the Utah-headquartered company was not providing the prison staff required under its contract with Mississippi. Investigators found MTC failed to provide the minimum mandatory staff to ensure the safety of inmates and prison employees but was paid as if it had adequately staffed the facilities
White issued a $462,299.32 demand for improper staffing credits invoiced to the Mississippi Department of Corrections for the operation of the East Mississippi Correctional Facility in Meridian, a $959,240.06 demand for improper staffing credits for the operation of the Marshall County Correctional Facility in Holly Springs, and a $6,002,027.92 demand for improper staffing credits for the operation of the Wilkinson County Correctional Facility in Woodville.
“I don’t care how big of an out-of-state company you are or how many campaign donations you make to the other politicians, if you owe taxpayers money because you failed to live up to a contract with the government, we will demand you pay it back,” White said. “No free rides on the backs of taxpayers.”
The Marshall County Correctional Facility is no longer under MTC management, as the state took it over in 2021 due to severe staffing shortages and hiring issues. In 2022, White’s office demanded nearly $2 million from MTC, alleging that nearly 12,000 mandatory shifts at the facility went unfilled from 2017 to 2020.
In response to White’s latest demand, MTC Vice President Michael Bell pointed to staffing shortages in Marshall County and argued the company had already made a “good-faith” payment to resolve the matter – one that MTC says the auditor’s office accepted. Bell said that after meeting with the auditor’s team in 2022 and 2023, MTC voluntarily paid the state $5.9 million to address issues at the three prisons referenced in the demand letter.
“When questions were raised regarding staffing deficiencies and vacancy deductions, MTC acted in good faith,” Bell said in a statement. “We conducted our own review and voluntarily paid over $5.9 million. That’s what an honest partner does. It is deeply disappointing and fundamentally unfair to ignore our efforts to work with MDOC to address the staffing challenges we both face in operating correctional facilities.”
Bell added that MTC worked with the Mississippi Department of Corrections to address workforce shortages, and said those efforts were ignored by the auditor’s office.
He also said the auditor’s office issued new demands related to the three prisons in May 2025, though MTC officials contend there were errors in how the amount owed was calculated. Rather than paying the full amount requested, Bell said MTC offered this past week to write a $4.5 million check “based on facts, evidence, and correct calculations,” though White’s team claims it never received the offer.
“On Friday, based on the facts, evidence, and correct calculations pursuant to the contract, MTC offered $4.5 million to [the state auditor’s office] to resolve these issues, which represents the principal allegedly owed plus reasonable interest and costs,” Bell said. “Instead of continuing to work together with MTC in a collaborative manner on these issues, MOSA has decided to issue a press release. While MOSA’s action is not surprising, it is not helpful nor is it productive for the State of Mississippi.”
The Mississippi Attorney General’s Office has confirmed that it received White’s demand letters and is reviewing them.
