Prison Privatisation Report
International
No. 52, Dec 2002/Jan 2003
Published by the Public
Services International Research Unit (PSIRU)
www.psiru.org/justice
This publication is
supported by a grant from the Foundation Open Society Institute.
IN
THIS ISSUE
Private sector’s role extended
The government of
Most prisons will have a
capacity of 400 or 600. However, eight will be designated for offenders between
the ages of 13 and 18 and will have a capacity of 40 or 60.
The need for 30 new prisons
was first announced by the previous administration prior to the last general
election (see PPRI # 44, 25 & 11). Of
First prison tender issued
The Israeli government has
begun a tendering process for a semi-private prison in Be’er
Shiva (see PPRI # 45, 43 & 34). The facility will be privately
financed, designed, built and maintained. The prison service will operate custodial services. Initially,
800 beds will be commissioned with possible expansion to 1,040. The 25 year
contract is worth some
In June 2000, the Israeli
prison service (IPS) held an international seminar on privatisation with
delegates from
In a presentation to the International Corrections and Prisons
Association conference in October 2001(see PPRI #48) the IPS argued for
privatisation on the grounds of existing prison overcrowding; the expected
significant growth in the prison population in the coming decade; the ministry
of finance only offering funding for a partial solution through to 2004; and
the need to invest in infrastructure within a short time. The attorney
general’s position was that a limited privatisation model may be introduced as long as responsibility
for security and powers of law enforcement remained with the IPS and that
privatisation be limited to a facility’s construction, maintenance, living
conditions, catering, medical care, inmate employment, social work, education
and psychological care. The ministry of finance’s position was that it
supported full privatisation and that limited privatisation should only be
applied if it was financially worthwhile.
The price of privatisation
In a recent financial statement Group 4 Global
Solutions reported that its operating margins in Africa increased from 8.7 per
cent in 2001 to 12.6 per cent in 2002 due to its newly opened prison in
Bloemfontein (see PPRI #51,46,42, 38, 36, 34, 30, 23, 20, etc). Now a
South African government task force has recommended that the contracts for the
two prisons financed, designed, built and operated by Group 4 and Wackenhut-led consortia need to be renegotiated.
Reducing service levels,
overcrowding the prisons, amending the fee payment structure and having the
consortia refinance the debts have been suggested as ways to cut costs.
The task team was set up to
investigate the prisons’ financing, costs, outputs and risk allocation; to establish a comparison with public sector
prisons; and to identify features for renegotiation to address the department
of correctional services’ affordability restraints.
Reporting to the correctional
services portfolio committee in November, the task team noted that returns on
investments in Group 4's prison could be up to 29.9 per cent while returns on
the Wackenhut prison were up to 25 per cent.
Construction and operating fees at
The report also stated that
the contract specifications were imported from the
Commercial confidentiality
prevented full disclosure of the task team’s report. Nor was there any mention
of the cost of the consultants used. However, in an article headlined ‘Private
is Better’ the Financial Mail,
Review of the Public Private Partnership Prison
Contracts,
n The Adam Smith Institute (ASI) has postponed its
‘high level international training course’ that was intended to encourage the
privatisation of
Prison negotiations continue
Progress is reported to be slow but the government of
Lesotho and Group 4 are still negotiating over the company’s proposal to build
and operate a 3,500 bed prison at Maseru replacing the country’s 12 existing
prisons (see PPRI # 49, 45, 43
& 41). The prison service is still opposed to privatisation and is due to
submit a paper outlining its concerns to the cabinet.
ACM makes a pitch
Australasian Correctional Management (ACM) was invited
to make a presentation at the 22nd Asian and Pacific Conference of
Correctional Administrators (APCCA) at
Delegates from 20 countries in
the region plus
Some conference papers, including Agenda Item
Two, Outsourcing of Correctional Services
- but not ACM’s presentation - are available
on the APCCA website www.apcca.org
Group 4 wins controversial
contract
Group
4 Falck has been chosen as preferred bidder for the
federal government’s A$100 million
contract to operate immigration detention centres for the department of
multicultural and indigenous affairs (DIMA) (see PPRI #51,49,46-44 &
42-36 ).
Group 4 staved off competition
from Management & Training Corporation (MTC) and Australasian Correctional
Management (ACM), which currently runs the centres and is owned by Group 4
after it acquired ACM’s owners, the Wackenhut Corporation, in May 2002 (see PPRI # 51-49
& 47).
Although Group 4 was chosen on
the basis of providing better value for money, ACM’s
bid will be considered if negotiations with Group 4 break down. ACM has run the
centres since 1998 but its 10 year contract was retendered
last year as a result of a range of management problems.
The new four year contract
includes a 51 page list of obligations which Group 4 will have to comply with
in order to receive maximum payments. ACM has been operating under a four page
general statement of detention principles. The Australian Labor
Party described the contract award as “a sham transfer” arguing that it was
inappropriate for an international corrections business to handle detention
centres.
Acacia prison - AIMS’ first
year
Western Australia’s department of justice withheld
A$1.05 million from AIMS Corporation’s contract fee for the operation of Acacia
Prison from May 2001 to May 2002 inclusive (see PPRI #48, 37, 36 ,34, 32, 30, 28 & 26). The
maximum payment due was A$21.09 million. Negotiations over the final amount
payable to the Sodexho-owned company were still
taking place when the department published its first year report on the
prison’s operation. At the end of each year, AIMS is entitled to a percentage
of the performance linked fee that has been withheld during the year, based on
performance against the schedule of annual performance measures.
The prison, near
He noted that there was a
delay in achieving the agreed prisoner population of 700 due to “the limited
availability of medium security prisoners, a marked downturn in the state’s
prisoner population and shorter sentences resulting in a higher than predicted
attrition rate.” But the prison was expected to reach full operating capacity
“early in the new year of operation.” There were “no escapes, no major
disturbances and no deaths in custody.”
There were three reported
incidents of self harm or attempted suicide, six serious prisoner on prisoner
assaults and two serious assaults by prisoners on contractor persons or
visitors. These figures were below the benchmarks for incurring penalties. The
rate of positive findings from random urine analysis was 9.09%. The benchmark
was 8 per cent.
However, key areas in which
AIMS’ performance did not reach the agreed benchmark and therefore did not
qualify for its full performance fee included:
n prisoners employed or in programmes -
benchmark achieved in only five out of 12 months;
n employment hours completed - benchmark
achieved in only nine out of 12 months;
n vocational education and training hours
provided;
n programme need in accordance with Individual
Management Plan requirements.
The high use of the
Ombudsman’s office by prisoners at Acacia was described as “disappointing and
reflects a poor internal prisoner grievance process which requires considerable
improvement in the year ahead.”
At the year end, some 23 per
cent of the prisoner population was of Aboriginal descent. Yet AIMS had “not established indigenous health
services at Acacia and has yet to achieve the health services expressed in
their initial proposal. Rehabilitation outcomes for 2001/2002 were below
performance expectations and therefore AIMS will not receive their full
performance fee for this measure.”
Annual Report Acacia Prison Services Agreement,
2001/2002, Department of Justice, Government of
Australasian Correctional Management Ltd (ACM) has had
more than A$100,000 withheld from its 2001/2002 performance linked fee for
operating Junee Correctional Centre 2001/2002 (see PPRI
#46, 41, 40, 38 & 35). ACM has run the prison since April 1993. The
contract was renewed in March 2001 after a successful rebid
and the government also agreed to ACM’s request for
the prisoner population to be increased from 600 to 750.
ACM’s re-bid included the post of
unit counsellor for each accommodation area but the company failed to recruit
appropriately qualified staff to these positions. The A$100,000 relates to
that. However, ACM will also be
penalised for failing to deliver the base level performance related to
behavioural programmes and individual counselling and the failure to appoint a throughcare specialist. The government also agreed to ACM’s request for the prisoner population to be increased
from 600 to 750.
In the latest review, the
department of corrective services’ monitor raised a number of other concerns about
the prison’s operation. The 2001/2002 performance report concluded, once again,
that “ACM continues to satisfactorily meet its contractual obligations under
the management agreement.” However, as well as the issues mentioned above
“continued attention was required” in
the following areas:
n core welfare services: the majority of welfare
services have been provided by members of the chaplaincy service. ACM
management have been advised to rectify;
n reception screening: the physical size of the
area allocated to the screening process has raised concerns relating to privacy
issues. Concerns have also been raised relating to the lack of special needs
analysis of sex offenders on reception;
n case management: the area of case file
management of inmate applications remains an area of concern. The concern
relates to a failure to satisfactorily track inmate applications and requests.
A review by departmental
branch heads responsible for inmate services and programming identified the
following concerns:
* a lack of documentary evidence on inmate case
management files relating to programmes and psychological services delivered to
inmates;
* the composition of staff on case management teams,
the full time staff allocated to the classification process and the physical
size of the area;
* there was no evidence of programmes targeting the
needs of females.
n alcohol and other drug services: there were
concerns regarding the work load of the Alcohol and Other Drug Specialist due
to the increase in inmate population;
n food services: a review identified
deficiencies in the temperature control of of both
hot and cold food, the storage of prepared food and the physical facilities
available;
n industries: inmate employment has been
reported on regularly in previous years. Actions taken by ACM to meet the
national benchmark (65 per cent of the inmate population) has been affected by
the decision to increase the population from 600 to 750;
n insurance: a review was undertaken of policies
held by ACM. Negotiations and consultation
are ongoing to ensure appropriate indemnity is provided to the
department.
Junee Correctional Centre
2001/2002, Performance Report, Appendix 31,
Sodexho subsidary
signs new prison contract
The prison service of
The contract is the eighth
prison for adults and or young offenders in
Global executive on board
UK Detention Services Ltd’s
international intentions have been signalled by the appointment of Tony Leech as
director, global development. Mr Leech resigned his post as general manager of
n UKDS has been jointly sponsoring a research
project aimed at “developing a generic framework for collecting Whole Life Cost
Data”. The work is being carried out at the
Chief inspector reports on
Forest Bank
The chief inspector of prisons noted 10 examples of
good practice and made 67 recommendations for improvements at Forest Bank
prison following a full announced inspection between 17 and
The prison near
In a statement accompanying
the report’s publication in December 2002, the chief inspector, Anne Owers, said: “Forest Bank was a very good local
prison. The relationships between staff
and prisoners were extremely positive and we found many examples of staff
dealing sensitively and appropriately with difficult prisoners. We were concerned about the low staff‑prisoner
ratios on the main wings, but we could find no examples of collusive or unsafe
behaviour as a consequence. In view of these levels, and the relative
inexperience of staff, we do however commend the director’s recent decision to
strengthen the management structure and increase staffing levels on the young
prisoners’ wing. The prison should continually review its staffing profiles, to
ensure that staff have the time to engage proactively with prisoners, and build
on the positive relationships that exist.”
The Inspectorate also found
that association and exercise were regular and
prioritised so that, unlike in many local prisons, prisoners had daily
access to showers and telephones; and there was a welcome emphasis on
cleanliness in cells and communal areas.
However, a major weakness was
that there was insufficient purposeful activity, with fewer than half the
prisoners engaged in meaningful work or education. The Inspectorate was also
concerned that the general atmosphere of respect did not extend to the visits
room, where prisoners and their visitors were separated by dividers and there
was excessive use of closed visits.
Concluding, the chief
inspector, said: “Overall, Forest Bank was a prison that had avoided many of
the pitfalls of newly‑opened private sector prisons with inexperienced
staff and was succeeding in spite of the pressures of significant population
increase. It was also a prison with a skilled Director and senior managers and
staff who were involved and valued: from junior wing officers to the extremely
impressive chaplaincy team, which was seen as an important resettlement and
counselling resource. The new Director
has a great deal to build on. We would urge him to develop the prison’s
education and training provision, and its resettlement strategy, as matters of
priority.”
Details in the inspector’s
report included:
n both
the reception process and the induction programme
were delivered in a mechanical way which did not always engage prisoners. The medical detoxification programme did not comply with requirements of the relevant
Prison Service Order and this was a significant deficit. Those prisoners undergoing detoxification
also needed increased support; this was not being offered as systematically as
required because staff were diverted to achieve voluntary drug testing
targets. There was also a need for
greater liaison between healthcare and drugs workers in the establishment. Systems within the pharmacy were poor and in
need of review and improvement;
n there was also an excessive use of closed visits
following positive mandatory drug testing findings, and the standards of proof
applied at adjudications were, in general, unacceptably low;
n nursing levels ... were low. There was also an unacceptable lack of care
plans for prisoners held in the healthcare unit. Overall, managers were aware of the
shortfalls of the service they were providing and had plans to tackle them;
n fewer
than 50% of prisoners were involved in meaningful work in industries or in
education, though there were plans to operate a system of split shifts in work
areas to distribute available employment places more equitably. There was some over-counting on regime
monitoring returns which was distorting the actual amount of activity available
in the prison;
n ...
shortfalls in the number of teachers ... affected outcomes for prisoners and
limited the external qualifications on offer. There were also some poor
individual learning plans which did not address the individual needs of the
learners concerned and were not linked to sentence plans. Staff were keen to develop education and
training opportunities but they were not always appropriately qualified to
pursue these developments;
n the
prison had grasped the resettlement agenda and was energetic and innovative in
its approach. This approach was not,
however, systematic and as a result was failing to target resources as
effectively as it could have. The prison lacked a strategy document and so
lacked a clear vision and direction for the development of its resettlement
work;
n for
young prisoners, the wing was regarded as the primary area where they felt
unsafe. The unconvicted
young prisoners who responded to our questionnaire were far and away the group
who felt the most victimised, verbally and
physically, by other prisoners and vulnerable to staff making insulting
remarks;
n the
prison was not complying with Prison Service Order 3550, The Clinical Needs
of Substance Misusers, ... this had implications
for both the humane treatment and the safety of prisoners;
n a
clear and efficient request and complaint system was in place for those
prisoners with the confidence and skills to use it. It was less apparent how prisoners with
special needs were enabled to use the system.
The low levels of prisoner satisfaction with the R&C system
warranted further investigation;
n a
major issue was that nine of the nurses had been recruited as ‘G’ grades but
were, in fact, relatively newly qualified and did not possess the competences
of ‘G’ grades. The health care manager was working with
n there were good resources for welding and furniture
making, a high standard of practical work, effective support for learners, and
good links with employers. But there were no courses leading to qualifications,
no professional staff development for instructors, and no initial assessment
for vocational training;
n [literacy and numeracy] ...
insufficient teachers and instructors, poor individual learning plans,
insufficient professional staff development, and insufficient externally
accredited qualifications.
Individual learning plans were poor, and
were not linked to sentence planning;
n most wings had only two or three staff on duty to
supervise between 60 and 80 prisoners so, in most instances, it was prisoners
who took the initiative and approached staff.
Staff-prisoner
ratios did not allow for high levels of interaction or much pro-active work on
the part of staff, but the atmosphere was relaxed and prisoners managed their
own time and activities responsibly and with regard to others;
n resettlement needs were not sharply focused on
accommodation - the initial contract for running the prison did not specify
that accommodation issues should be addressed;
n the general environment supported the offending behaviour programme, but
relatively low staff levels and the pressure of work on some prisoner custody
officers meant there was realistically little opportunity for supportive work
for prisoners on the wing who were attending enhanced thinking skills (ETS)
course;
n as the result of the lack of an effective population
needs assessment there had been no work on targeting interventions for short
stay prisoners, and the overall approach was failing to distinguish the
specific needs of young offenders;
Report on a Full Announced
Inspection of HM Prison & Young Offender Institution Forest Bank, 17-21
June 2002, HM Chief Inspector of Prisons, Home Office,
James Barclay, a remand
prisoner, hanged himself at Premier
Prisons-run Kilmarnock prison on
The two officers worked four more night
shifts after the incident and both were commended by managers for their
conduct. But
after an internal inquiry Beck and Kelso were fired by the company for gross misconduct relating
to the incident. They claim
that they were not offered trauma counselling by the
company until after they were fired. The two are now giving evidence at a fatal accident
inquiry (FAI) at
The inquiry, which started in
December, has heard that Mr Barclay was put on a ‘low-risk watch’ -
unlikely to self-harm - despite having tried to kill himself the previous day
and despite having a ‘high-risk file’ from Strathclyde
Police. It is alleged that this file was not passed to the prison
officers. Mr Beck has alleged that suicide watches were
missed daily due to under-staffing, claiming that 90 per cent of ‘level three’
watches were not getting done every half hour as required.
Support for the former
employees has come from within the prison in the form of leaked internal
documents. For example, eight months after Mr Barclay’s death, Margaret Coyle,
a senior prison counsellor alleged in a letter to the prison’s assistant
director that there were still basic failures in suicide watch procedures. She
concluded: “Having detailed the shortcomings ... I am sure I do not need to
remind you of the seriousness of this. As you know, there is a fatal accident
inquiry taking place this week - if these [assessment] books were a part of
that inquiry we would be held responsible.”
The inquiry is expected to
last until the end of January 2003 with the Sheriff’s findings to be published
some time later. A spokesman for the company declined to comment on the case.
n Kilmarnock Prison Services
Ltd (KPSL, part of Premier Custodial Group) made a pre-tax profit of
£1.11million for the financial year ended
n
A coalition of students and
faculty at the
The coalition argues that the
$33.4 million saved could be diverted to prevent the university eliminating 16
programmes. It has called on the
university president to take a stand against the governor’s plans.
The state’s prison budget is
currently $600 million per year. Between 1980 and 2000
Education not Incarceration,
c/o Caroline Isaacs, American Friends Service Committee,
n A proposal to build and
operate a private prison in
Until early November 2002
Terry Stewart was the state of
CSC corruption probe
Correctional Services Corporation
(CSC) is being investigated by the State of New York’s lobbying commission,
board of elections and legislative ethics committee as well as Manhattan’s district attorney’s
office over the company’s lobbying
activities (see PPRI #45-42, 36, 30, 26, 24,21,14 &3).
Former Brooklyn Assemblywoman Gloria Davis, a democrat,
has admitted receiving free, chauffer-driven transport from CSC from 1998 to
March 2002. The
The lobbying commission is
investigating whether CSC provided services to other state lawmakers.
Meanwhile, the ethics commission is in possession of a federal report alleging
that CSC provided campaign workers and other help to
Since 1992 CSC has had
corrections contracts worth $35.4 million with the state. The company also
operates two half way houses in
High staff turnover at CCA
facilities
Staff turnover at Corrections
Corporation of
No decision yet
Capitalist Punishment: Prison
Privatization & Human Rights, Eds: A.Coyle, A. Campbell & R. Neufeld, Clarity Press,
Atlanta, www.claritypress.com and Zed Books, London, www.zedbooks.demon.co.uk
This book covers a range of
issues relating to private prisons and includes chapters on the
Using Inmate Data in Assessing
Prison Performance: A Case Study Comparing Private and Public Prisons, Scott D.
Camp, Gerald G. Gaes, Jody Klein-Saffran, Dawn M. Daggett and William G. Saylor, Criminal Justice Review,
Volume 27, No. 1, Spring 2002, Georgia State University.
Comparing Taft Correctional
Institution in
What the privateers won’t tell
you, 8th Edition, January - June 2002, Corrections
A collection of predominantly
The At-Risk Youth Industry by Eyal Press and Jennifer Washburn, Atlantic Monthly,
December 2002, www.theatlantic.com/issues/2002/12/press.htm
The article focuses on the
Not With Our
Money! www.notwithourmoney.org/index.html
The new website of NWOM!, a
network of student and community activists campaigning against private prisons.
The site includes campaign information, resources and links.
Record of Investigation Into Death
of Frank Weston at Port Phillip Prison, Case No. 2075/00, State
Mr Weston died from the toxic
effects of methadone at this Group 4-run prison in July 2000. The evidence “
... does not enable one to say who provided such methadone. Preventative
safeguards have now been implemented to prevent a recurrence of any death in
circumstances akin to those set out in this finding.”
Partners in Public Service,
Fall/Winter 2002, APCTO, www.apcto.org
The current newsletter from
the Association of Private Correctional & Treatment Organizations includes
a snapshot of its lobbying activities on behalf of the private prison industry.
ENDS
Prison Privatisation Report
International
Public Services International
Research Unit (PSIRU)
School of Computing and
Mathematical Sciences
30 Park Row,
Internet:www.psiru.org/justice
Email: Stephen Nathan, stephennathan@compuserve.com