Publications

Prison Privatization Raises Conflicts of Interest

Prison privatization also raises policy concerns about the routine quasi-judicial decisions that affect the legal status and well-being of inmates. To what extent, for example, should a private corporation's employee be allowed to use force, perhaps serious or deadly force, against a prisoner? Or, should the employee of a private company be entitled to make recommendations to parole boards, or to bring charges against a prisoner for an institutional violation, possibly resulting in the forfeiture of good time credits toward the inmate's release? Decisions in the parole and good-time areas can increase the inmate's period of confinement.

This concern can be especially sensitive, raising a possible conflict of interest, if the private company is paid on a per diem basis, or if the company's employees are given stock options as a fringe benefit, both of which exist in many of the current contracts. In fact, a recent article noted that some CCA guards in Tennessee said privately that they were encouraged to write up prisoners for minor infractions and place them in segregation. Inmates in segregation not only lose their good time, but also have 30 days added to their sentence — a bonus of nearly $ 1,000 for the company at some prisons.33

Private Prisons Substitute Private Monopolies for Publicly Accountable Facilities

Proponents of private prisons argue that "competition" will drive down costs and improve quality. But in reality, there is no free market in the prison industry. A prison entails a large capital investment and specialized personnel. CCA and Wackenhut currently manage approximately 75 percent of all private adult prison beds.34 When considering CCA's monopoly of private prisons in the state of Oklahoma, State Sen. Cal Hobson expressed his concern with CCA's ability to overprice its services. According to the senator, "the more you're addicted to one company, the more advantage you give them at negotiation time."35

33 "Prisons For Profit," The Nation, January 5, 1998, p.15.

34 Charles Thomas, Dianne Bolinger, and John Badalamenti, Private Adult Correctional Facility Census, Tenth Edition, Private Corrections Projects, University of Florida, March 15, 1997.

35 Anthony Thornton and Randy Ellis, "Holdenville Prison Lease Sets Stiff Terms For State," Sunday Oklahoman, December 15, 1996.

Print Version