Two days after Judith Collins was made the new Corrections Minister in a cabinet reshuffle, Corrections CEO Ray Smith has announced that Serco's contract to manage Mt Eden prison will not be renewed.
This is the result of a culmination of issues within the prison. Troubles in Mount Eden prison became headline news with reports of fight clubs and allegations of practices like "dropping.”
Despite the issues, Serco will still hang on to their 25 year contract of Wiri prison. Minister Sam Lotu-Iiga says, “Wiri is, I'm reasured is running well, is running effectively.”
In the past few months, Lotu-Iiga has been under the spotlight for his handling of this issue and the position he once held now lies with Collins.
Labour MP Kelvin Davis says, “It's absolutely right to cancel their contract. They've proved to be incompetent at running prisons.”
A newly appointed body will run the prison in 2017.