Mississippi Auditor Demands MTC Repay $7.4M
Summary
State Auditor Shad White issued over $7.4 million in civil demands to Management & Training Corporation (MTC) for improper staffing credits at three Mississippi correctional facilities: $462,299.32 for East Mississippi Correctional Facility, $959,240.06 for Marshall County Correctional Facility, and $6,002,027.92 for Wilkinson County Correctional Facility. The demands have been referred to the Attorney General's Office for enforcement in court. The investigation found that MTC was paid as if it had provided required minimum staffing but failed to actually provide those staff at the contracted facilities.
Private prison contractors and other entities holding government service contracts in Mississippi and comparable jurisdictions should audit their staffing documentation now. The MTC action demonstrates that government auditors are actively cross-referencing contracted minimum staffing levels against invoiced amounts, and the referral to the AG's Office signals the state intends to litigate rather than negotiate. Any gap between contracted service levels and actual service delivery creates repayment exposure and potential litigation risk.
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What changed
The Mississippi State Auditor's Office issued civil demands totaling $7,423,567.30 against Management & Training Corporation (MTC) for improperly billing the Mississippi Department of Corrections for staffing credits the company did not earn. Investigators determined that MTC charged the state for minimum mandatory prison staff it failed to provide at the East Mississippi, Marshall County, and Wilkinson County Correctional Facilities. The demands represent one of the largest civil recovery actions in the Auditor's Office history, and the case has been formally referred to the Mississippi Attorney General's Office for litigation.\n\nMTC and other private prison operators holding state contracts should treat this action as a clear signal that staffing non-compliance will be pursued aggressively. Government contractors in Mississippi and across other jurisdictions should ensure their internal staffing records match actual on-site personnel, as auditors have demonstrated they will cross-reference contracted obligations against billed costs. Companies facing similar billing disputes should prepare documentation demonstrating compliance with contractual staffing minimums, as the AG referral suggests this matter will proceed to contested litigation.
Archived snapshot
Apr 23, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
04/13/2026
JACKSON, Miss. – Today State Auditor Shad White announced over $7.4 million in civil demands to Management & Training Corporation (MTC). The demands have also been referred to the Attorney General’s Office for enforcement in court.
“This is one of the largest civil demands made in the history of the Auditor’s Office,” said Auditor White. “We’re now turning this case over to the AG’s Office for enforcement to ensure accountability for taxpayers, and I hope they will litigate the case immediately.”
The Auditor’s Office started investigating MTC when allegations arose that MTC was not providing the prison staff required by their contract with the state. Investigators found MTC failed to provide the minimum mandatory staff to ensure the safety of inmates and prison employees but were paid as if they had.
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, a $959,240.06 demand for improper staffing credits for the operation of the Marshall County Correctional Facility, and a $6,002,027.92 demand for improper staffing credits for the operation of the Wilkinson County Correctional Facility.
“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 government, we will demand you pay it back,” said White. “No free rides on the backs of taxpayers.”
Suspected fraud can be reported to the Auditor’s office at any time by clicking the red button at www.osa.ms.gov or calling 1-(800) 321-1275 during normal business hours.
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