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Brazilian Prosecutors Want Private Prison Contract Scrapped

A man digs a grave at the Parque Taruma cemetery in Manaus, Brazil, for an inmate killed in a prison riot, Jan. 4, 2017. Forensic experts said that half the slain inmates were beheaded and several others were dismembered.

Brazilian prosecutors on Thursday demanded that a multimillion-dollar private prison contract in Amazonas state be axed because of signs of corruption as the government blamed mismanagement for the country's bloodiest prison massacre in decades.

Amazonas' accounting court prosecutor, Carlos Almeida, said he found signs of payment irregularities in a contract the state signed with the Pamas consortium to manage all its prisons, including the Anisio Jobim penitentiary, where 56 inmates died in an uprising this week.

The killings have raised questions about whether private companies should be running prisons in Brazil, especially in Amazonas, where the inmate population has more than doubled since 2010.

The Pamas consortium, made up of Umanizzare Gestão Prisional e Serviços Ltda and LFG Locaçoes e Serviços Ltda, received about 400 million reais ($125 million) in 2016 to co-manage Amazonas' prisons, Almeida said.

That was after Umanizzare signed a contract with Amazonas in 2015 for the consortium to run state prisons for 27 years at an estimated cost of 205 million reais a year, and received a payment of 198 million reais at the time of signing, said Almeida.

Suspicious figures

The difference between the 2016 payment and the estimated cost of the contract raised prosecutors' suspicions, as did the original price tag, which was well above those for similar agreements in other states, Almeida said.

"There are indications those payments could have been inflated," Almeida told Reuters, adding that he had warned state authorities about problems with the contract and recommended they not sign the deal.

Umanizzare and LFG did not respond to requests for comment.

Brazilian Justice Minister Alexandre Moraes said the private prison management model was not to blame for the massacre, but pointed to mistakes by the administrators of the prison, which had three times as many inmates as its capacity.

Moraes said Umanizzare failed to act on intelligence reports indicating that inmates planned a prison break during the holidays and that weapons were easily smuggled into the facility during a New Year's Eve party.

Relatives cry during the burial of an inmate killed in a prison riot, at the Parque Taruma cemetery, in Manaus, Brazil, Jan. 4, 2017.
Relatives cry during the burial of an inmate killed in a prison riot, at the Parque Taruma cemetery, in Manaus, Brazil, Jan. 4, 2017.

Who is at fault?

Umanizzare said in a Wednesday statement the state was responsible for guarding the inmates, while the company was responsible only for cleaning, medical treatment and electronic surveillance.

But Moraes said at a news conference on Thursday that the company was also responsible for security at the prison.

The guards hired by the company were poorly trained and could be easily bribed because of their low salaries, according to a ministry report on conditions at the prison in 2016.

Private management of prisons is relatively new in Brazil, with fewer than two dozen penitentiaries under the model. Yet it remains an attractive alternative for heavily indebted state governments as Brazil remains mired in recession.

Watchdog groups said this week's massacre in Manaus showed that profits and prison management could not mix.

"An inmate is not a commodity and cannot be the object of a contract," said Marcos Fuchs, vice president of the National Council of Criminal and Prison Policies. "This model is ripe for corruption. ... Brazil should not follow in the steps of the United States."

Harsh criticism

The United States has more private prisons than any other nation, but the model has come under harsh criticism by human rights groups, who say it only gives incentive for more incarcerations to sustain profits. The United States has the world's biggest prison population.

In Amazonas, the number of inmates rose to 10,333 in 2016 from 4,979 in 2010, according to prison authorities, a rise state Governor Jose Melo blamed on increased drug trafficking from neighboring Colombia and Peru, the world's top two cocaine producers.

Seven of Amazonas' 19 prisons are under private management.

Melo's press office said that the hiring of the consortium by the state was done through the correct legal means of a public bidding process.