Campaigners are calling for security companies, such as G4S and Serco, which are under investigation for fraud, to be barred from being awarded public sector contracts.
The Howard League, a prison charity for Penal Reform, criticised ministers for considering giving these multinationals under investigation, new contracts.
Chief executive Frances Crook said: “The delivery of justice is one of the most precious public services and we must, as a nation, adhere to the highest standards of probity.”
“The dossier compiled by the Howard League is a litany of failure by private companies,” Ms Crook added.
The allegations will be sent to the Public Accounts Committee which investigated government outsourced contracts earlier this year.