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The Honolulu Advertiser
Posted on: Monday, March 31, 2008

Audit of private prisons possible

By Kevin Dayton
Advertiser Big Island Bureau

Hawaii news photo - The Honolulu Advertiser

Clayton Frank

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State lawmakers today will consider ordering an audit of two Corrections Corporation of America facilities in the wake of national media accounts alleging that the huge private prison company misrepresented statistical data to make it appear that CCA facilities had fewer violent acts and other problems than was actually the case.

Hawai'i pays CCA more than $50 million a year to house more than 2,000 men and women convicts in CCA prisons in Arizona and Kentucky.

Senate Bill 2342 calls for the State Auditor to conduct performance audits of two of the three Mainland prisons that house Hawai'i inmates, including reviews of the food, medical, drug treatment, vocational and other services provided to Hawai'i inmates.

The audit also would scrutinize the way the state Department of Public Safety oversees the private prisons and enforces the terms of the state's contracts with CCA.

According to the bill, "there has never been an audit of the private Mainland prisons that Hawai'i has contracted with to house the state's inmates, despite the fact that deaths and serious injuries have occurred at several of the contract prisons on the Mainland."

Clayton Frank, director of the state Department of Public Safety, testified against the proposed audits in Senate hearings last month, calling the audits "unnecessary and repetitive" because his department already conducts quarterly audits to make sure CCA is complying with its contracts with the state.

Frank also suggested his department was being singled out, arguing that if lawmakers want performance audits to provide more accountability and transparency to the public, "then it should apply to all state contracts and not be limited to just the Department of Public Safety."

Critics of the Mainland prison contracts contend the audits are needed because the private prisons are for-profit ventures designed to keep costs as low as possible.

During the decade that Hawai'i has housed inmates on the Mainland, the state itself has criticized private prison operators when the companies failed to provide Hawai'i inmates with programs that were required under the contract. Now, supporters of the audit bill say an independent review is necessary to scrutinize what is one of the state's largest ongoing contracts of any kind with a private vendor.

"Are we getting what we pay for? We'd like to know," testified Jeanne Y. Ohta, executive director of the Drug Policy Forum of Hawai'i.

The audit would cover the 1,896-bed Saguaro Correctional Center in Eloy, Ariz., which houses only male prisoners from Hawai'i, and the 656-bed Otter Creek Correctional Center in Wheelwright, Ky., which holds about 175 Hawai'i women inmates.

The House Finance Committee hearing on the bill today comes in the wake of Mainland media reports citing a former CCA manager who said he was required to produce misleading reports about incidents in CCA prisons. The company operates about 65 prisons with about 75,000 inmates.

Time magazine interviewed former CCA senior quality assurance manager Ronald T. Jones, who said CCA General Counsel Gus Puryear IV ordered staff to classify sometimes violent incidents such as inmate disturbances, escapes and sexual assaults as if they were less serious events to make the company performance appear to be better than it was.

Jones said more detailed reports about the prison incidents were prepared for internal CCA use, and were not released to clients. CCA denied the allegations, which Time published as Puryear is being considered for a post as a federal judge.

The Private Corrections Institute Inc., an organization opposed to private prisons, wrote to Hawai'i prison officials urging them to investigate CCA's reporting procedures in the wake of the Time report.

Alex Friedmann, vice president of the institute, said most state monitors who are overseeing CCA prisons "largely rely on information and data provided by CCA; further, the accuracy of incident reports is entirely dependent on whether those incidents are documented by the company's employees."

Hawai'i Public Safety officials did not respond to requests for comment on the allegations in the Time article.

Reach Kevin Dayton at kdayton@honoluluadvertiser.com.