Lima, August 4 (teleSUR-RHC)-- The Peruvian government cleared the way for the privatization of prisons, Chief Minister Pedro Cateriano announced on Monday. The move comes among a raft of penal reforms aimed at tackling organized crime, the minister said, including increasing sentences for hired killers, and locating suspects through mobile devices.

The reasoning behind the change to prison funding, according to the official, was because “today, a lot of the crime coordination activities happen from prison facilities.”

“We open the possibility of mixed system, that allows simultaneously the role of the State with the support of private companies,” said Cateriano, “and that also we have technically administered prisons, with technological advances, with private investment.”

In the United States, the private prison system is a $5-billion industry, and represents some 10 percent of all incarcerations in the country. The system has been constantly criticized by human rights organizations who say companies are profiting off the incarceration and suffering of individuals.

A recent report found that private prisons in the United States keep people locked up two to three months longer than public prisons.

The findings contradict industry claims that private prisons see lower recidivism rates through offering higher quality and innovative rehabilitation programs. Instead, what it indicates is that there may be a financial incentive for operators of private prisons to maximize the number of days each prisoner serves and keep prisons full, since private prisons are paid on the basis of each occupied bed.