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prison privatisation in south africa issues, challenges and ...

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chairperson, Mr. Peter Kirby. One of the most important po<strong>in</strong>ts to note from exam<strong>in</strong><strong>in</strong>g the<br />

contracts <strong>and</strong> the audit report is the hidden <strong>in</strong>flexibility of the arrangements. The state owns the<br />

l<strong>and</strong>, but the build<strong>in</strong>gs are leased for as long as 40 years. The legal <strong>and</strong> f<strong>in</strong>ancial complexities<br />

<strong>in</strong>volved with term<strong>in</strong>at<strong>in</strong>g a contract <strong>in</strong> this form make it extremely <strong>in</strong>flexible. The <strong>in</strong>dependent<br />

auditor’s report concluded, "In the case of private <strong>prison</strong>s, the contractual model can actually<br />

impede resolution because the operator <strong>and</strong> the Government can become locked <strong>in</strong> contractual<br />

enforcement mechanisms, rather than the Government simply direct<strong>in</strong>g that the problem be<br />

resolved."16<br />

The management audit found that the contracts actually negated many of the purported benefits<br />

of <strong>prison</strong> <strong>privatisation</strong>. In addition to the lack of flexibility which def<strong>in</strong>es any contract, the Kirby<br />

report found that the government was restricted <strong>in</strong> its ability to respond to poor performance by<br />

the contractors because, "the contracts effectively require the Government to tolerate significant<br />

shortfalls <strong>in</strong> performance."17 The report goes on to note, "It is difficult if not impractical to enforce<br />

adherence to qualitative outcomes <strong>in</strong> a contractual agreement. This is a major problem <strong>in</strong>herent<br />

<strong>in</strong> us<strong>in</strong>g contracts as the preferred method of service delivery."18<br />

United K<strong>in</strong>gdom<br />

In the United K<strong>in</strong>gdom, the juvenile justice system has a long tradition of <strong>in</strong>volvement with the<br />

private sector. Reform schools were <strong>in</strong>spired <strong>and</strong> created by the private sector <strong>in</strong> the mid-<br />

1800s, <strong>and</strong> the role of the voluntary sector has rema<strong>in</strong>ed. In the UK, much like the US, it was<br />

the pragmatic appeal of private sector contract<strong>in</strong>g which ga<strong>in</strong>ed popularity. In the mid-1980s,<br />

the Thatcher era saw an almost pathological aversion to public sector spend<strong>in</strong>g <strong>and</strong><br />

programmes. This was accompanied by a belief that the market system brought better efficiency<br />

<strong>in</strong> any field. Attracted by the ideology <strong>and</strong> faced with overcrowd<strong>in</strong>g, the UK followed Australia<br />

<strong>in</strong>to the <strong>privatisation</strong> field with the open<strong>in</strong>g of The Wolds <strong>prison</strong> <strong>in</strong> Yorkshire. Management of the<br />

320-bed medium security rem<strong>and</strong> <strong>prison</strong> was contracted to Group 4 Services.<br />

Wolds was designed by Her Majesty’s Prison Service (HMPS) with the orig<strong>in</strong>al <strong>in</strong>tention that it<br />

would be managed by the <strong>prison</strong> service. It was contracted to Group 4 <strong>in</strong> the hope that the<br />

private sector could improve <strong>prison</strong> conditions, as the <strong>prison</strong> service had seen its share of bad<br />

publicity <strong>in</strong> recent years. The tender documents for the contract reflect this optimistic faith <strong>in</strong> the<br />

superior service delivery capabilities of the private sector:<br />

"The contract<strong>in</strong>g out of the rem<strong>and</strong> <strong>prison</strong> offers a unique opportunity to establish<br />

this fresh look <strong>and</strong> approach to the way <strong>in</strong> which <strong>prison</strong>ers on rem<strong>and</strong> are treated."19<br />

The performance st<strong>and</strong>ards for Wolds were much higher than those expected of the public<br />

sector, <strong>in</strong>clud<strong>in</strong>g a provision that <strong>prison</strong>ers have 15 hours out of cell time. As a result, the staff at<br />

Wolds were presented with both an opportunity <strong>and</strong> a challenge <strong>in</strong> that they were asked to<br />

provide a level of service which had never been offered <strong>in</strong> the <strong>prison</strong> service before.<br />

When Wolds opened on April 6, 1992, it was thought of as the "penal experiment of the<br />

century."20 The pressure for the great experiment of Wolds to succeed was <strong>in</strong>tense, as then<br />

Prisons M<strong>in</strong>ister Angela Rumbold declared, "If, <strong>and</strong> only if, the contracted rem<strong>and</strong> centre proves<br />

a success might we move towards <strong>privatisation</strong> of other parts of the Prison Service."21 This led<br />

to <strong>in</strong>tense scrut<strong>in</strong>y <strong>and</strong> monitor<strong>in</strong>g by both the public <strong>and</strong> private sector.<br />

The research team which studied Wolds throughout its early stages noted that none of the<br />

anticipated ‘punishment for profit’ ideology permeated the management structure. Rather, the

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