Lawmaker Asks State To Rescind Private Prison Deal
By Steven K. Paulson, AP Writer
(AP) DENVER A state lawmaker called on the Department of Corrections to rescind a contract for a private prison in Ault, saying the company failed to deliver on a previous contract and never should have been allowed to bid on the new 1,500-bed facility.
Rep. Buffie McFadyen, D-Pueblo West, said GEO Group lost its contract to build a detention facility in Pueblo because it delayed the start of construction, then tried to renegotiate its contract to get a guarantee that it would be paid for 90 percent occupancy, even if beds were not filled.
"Basically, the state of Colorado was held hostage for four years. They didn't even break ground," McFadyen said.
A spokesman for GEO Group did not return a call seeking a response.
McFadyen said the Colorado Bureau of Investigation is trying to determine whether the contract was tainted after a former top state prisons official set up a prison consulting business while still employed by the state and helped GEO Group try to land a $100 million contract for the new prison.
Auditors refused to identify the official, who told auditors that if the company he represents gets the contract, he would get about $1 million. McFadyen identified the former state employee as former director of prisons Nolin Renfrow.
http://cbs4denver.com/crime/local_story_065114728.html