U.S. Justice Department Says Goodbye to Use of Private Prisons

Image courtesy of Business Insider.
Image courtesy of Business Insider.

The Department of Justice announced plans to end its use of private prisons Thursday, citing the major safety and security issues that occur at privately operated facilities.

According to the Washington Post, Deputy Attorney General Sally Yates made the announcement in a memo Thursday telling officials to cease the renewal of contracts with privatized prisons. Officials also have the option to “substantially reduce” the scope of said contracts, the paper reports.

For Yates, the ultimate goal is “reducing — and ultimately ending — our use of privately operated prisons.”

“They simply do not provide the same level of correctional services, programs, and resources; they do not save substantially on costs,” she wrote in the memo. “And as noted in a recent report by the Department’s Office of Inspector General, they do not maintain the same level of safety and security.”

Last week, the Inspector General’s office released a scathing review of the nation’s privatized prisons. According to its report, officials found that “contract prisons incurred more safety and security incidents per capita” than did facilities run by the Federal Bureau of Prisons. For instance, the private prisons were reported as having eight times the cell phone contraband confiscated on an annual basis than BOP institutions. The contract facilities also had higher rates of both inmate-on-inmate and inmate-on-staff assaults, according to the review.

“…Consistent with our recommendation, we believe that the BOP needs to examine the reasons behind our findings more thoroughly and identify corrective actions, if necessary,” the Inspector General’s report read.

The office’s recommendations include an enhancement of the BOP’s oversight checklist and increased assurance that the inmates housed in these private facilities receive proper health and correctional services.

According to CNBC News, prison stocks plummeted after the DOJ made its announcement. The stocks for major prison companies like Correctional Corp. of America and GEO plunged a whopping 40 percent Thursday afternoon. Trading in both stocks were occasionally halted amid the sharp decline, the news site reported. The companies are two of the largest publicly-traded, private prison operators.

Yates said Thursday that the bureau has already taken steps “to reduce [its] reliance on private prisons.” For instance, the agency declined to renew a contract for 1,200 beds at the Cibola County Correctional Center in New Mexico, the Washington Post reports. Yates also wrote that the bureau is working to modify a request for a 10,800-bed contract.

“Taken together, these steps will reduce the private prison population by more than half from its peak in 2013 and puts the Department of Justice on a path to ensure that all federal inmates are ultimately housed at bureau facilities,” the deputy attorney general concluded.

Per the Washington Post, President of Management and Training Corporation Scott Marquardt has since disputed the inspector general’s report and questioned how BOP facilities and privately run ones could even be compared to one another.

“Any casual reader would come to the conclusion that contract prisons are not as safe as BOP prisons,” Marquardt wrote. “The conclusion is wrong and is not supported by the work done by the [Office of the Inspector General].”

While Yates says the DOJ is well on its way to stopping the use of private prisons, she admits she’s unsure exactly how much time and money it’ll take.

“We have to be realistic about the time it will take, but that really depends on the continuing decline of the federal prison population, and that’s really hard to accurately predict,” Yates said.

TAGS Deputy Attorney General Sally Yates Justice Department Private Prisons Private Prison Corporation Stocks U.S. Bureau of Prisons










"I'm just trying to make a way out of no way, for my people" -Modejeska Monteith Simpkins









Original Post

Nope, what would sound really, good, would be our sons staying out of those Harambe Hell Holes. Humans shouldn't be locked up; nor should animals. Stop doing harm to others like it's being done now. That little toddler from Syria did not deserve all that horrific bombing attack and whatever else went his way. His parents, damn near killed too, had to flee somewhere!

Think of all the people that have been BLOWN TO BITS for centuries; maybe ever since man has been in existence. Man's just CONSUMED BY HATRED and is a MURDERER of the FIRST DEGREE.

How do people become so wayward, evil, murderous, hateful; a few years after they are born? All any of us did was be born. So many of the monsters that are created after the fact, is mind blowing.

A man and a woman fornicate, a baby is produced, look what has happened to so many of the people that were initially just BORN!!!! What makes such MONSTERS?

People killing people that were created by other people worldwide. We're beyond INSANE. Maybe the Sky God feels we should ALL turn into corpses and He's working on that happening. Ages be damned.

Sky God says:  "Die, just die; the sooner the better; none of you appreciate the life you've been given anyway! Bye!"

Last edited by Norland

Let's see what happens, money talks bullshit walks.... They will not easily let billions of dollars just blow away, they have too much invested and stock holders to make happy. Let's see what happens, likely it's bullshit. 

If they really do that, great!

Billions of dollars blew away in Iraq!!! White folks waste heaps of money and lose it too!

If they do away with Private Prisons, there are enough prisons in the Prison Industrial System for SLAVERY to prevail. They have some weapons and furniture and only Sky God knows what else, that has to be built. Can't spend $15.00 an hour; $1.50 a year will more than serve the purpose as far as pay is concerned, per person.

Sorry, But The Private Prison Industry Isn’t Going Anywhere

Read this before you celebrate the demise of for-profit prisons.

08/18/2016 04:14 pm ET | Updated 5 hours ago
For-profit prison companies are widely criticized for their practices.

The stock prices of the two biggest private prison companies in the United States nosedived on Thursday after the Department of Justice vowed to stop housing inmates at their facilities.

It’s a significant blow to an industry that has spent millions lobbying for itself, but don’t expect this to put anyone out of business any time soon.

The Department of Justice announcement, following a report that found private prisons are less safe than federally run alternatives, only applies to the Federal Bureau of Prisons, which accounts for just a fraction of the private prison industry’s business.

Over the past decade, immigration detention has become the industry’s cash cow. State contracts remain a lucrative revenue stream, too. Plus, as talk of prison reform gained steam over the past two years, the only three companies ― two public, one private ― under contract from the Federal Bureau of Prisons began diversifying their services to include halfway houses and electronic GPS monitoring.  

For-profit prisons saw enormous growth in their immigrant detention businesses over the past decade. 

Still, the two publicly traded private prison giants took a beating on Wall Street on Thursday.

Shares of Corrections Corporation of America, the country’s largest private prison firm, fell by more than 38 percent. About 11 percent of the company’s revenue last year came from the Federal Bureau of Prisons, down from 13 percent the previous year. But the company has diversified.

In 2013, CCA spent $36 million to buy Correctional Alternatives, a provider of housing and rehab services, such as work furloughs and home confinement. Then, in October 2015, the company acquired Avalon Correctional Services for about $157.5 million,beefing up its network of halfway houses. 

In 2014, the Obama administration awarded the company a four-year, $1 billion deal to detain asylum seekers from Central America ― many of them families with children and infants. And last year, the Department of Homeland Security’s Immigration and Customs Enforcement agency nearly doubled the amount of revenue it was sending to CCA.

“Locking up immigrants, including families and children fleeing extreme violence in Central America, should not be a source of profit for huge corporations, particularly given private contractors’ terrible record providing inadequate medical and mental health care to dying immigrants,” the nonprofit Center for Constitutional Rights said in a statement on Thursday. 


“We value our partners, and we will continue to work with them, both through the types of management solutions we’ve provided for more than three decades, as well as new, innovative opportunities we’ve been exploring in recent years in a proactive effort to meet their evolving needs,” Jonathan Burns, a spokesman for CCA, said in a statement. “It’s important to note that today’s announcement relates only to BOP correctional facilities, which make up seven percent of our business.”

GEO Group, the industry’s second largest company, saw its stock price plunge nearly 39 percent on Thursday. The company relied on the Bureau of Prisons more heavily than its bigger rival, pulling in 15 percent of its income from the agency, according to its annual report for investors. But immigration detention represented 18 percent of GEO’s revenue.

Plus, the company has diversified aggressively over the last few years. In 2011, itpurchased Behavioral Interventions, the world’s largest producer of electronic monitoring equipment for people awaiting trial or serving probation or parole sentences.


It’s unclear how much the Justice Department’s decision will hurt Management & Training Corporation, the only privately held prison company with a contract from the Bureau of Prisons.

In a statement, MTC said it was “disappointed” and argued that any decision to curtail its services based on “cost, safety and security, and programming is wrong.” Two of the company’s 26 facilities hold federal prison inmates, spokesman Issa Arnita told The Huffington Post. Arnita declined to share any information on how the decision will affect the company’s bottom line. (Privately held companies are not required to publicly report their earnings.)

“This is not an immediate death blow to the industry, but it is quite significant,” Carl Takei, staff attorney at the American Civil Liberties Union’s National Prison Project, told HuffPost on Thursday. “The Justice Department’s announcement today makes clear that the Bureau of Prison’s two-decade experiment with private prisons is finally coming to an end.” 

When it does finally end, it won’t be a moment too soon, he said.

“In general,” Takei said, “handing control of prisons to for-profit companies is a recipe for abuse, neglect and misconduct.”

UPDATE: 5:30 p.m. ― A spokesman for GEO Group offered a statement Thursday about the Justice Department’s decision.

“While our company was disappointed by today’s DOJ announcement, the impact of this decision on GEO is not imminent,” Pablo Paez, a company spokesman, wrote in the emailed statement. “Notwithstanding today’s announcement, we will continue to work with the BOP, as well as all of our government partners, in order to ensure safe and secure operations at all of our facilities.”

Add Reply

Link copied to your clipboard.