Public cash was thrown at Carillion to maintain British prisons despite ministers twice admitting the soon-to-go-bust firm was failing to deliver.
Cells were left with smashed windows while inmates lived in squalor and, in some cases, were unable to access a towel and soap.
But the Government still handed Carillion almost £100m from the public purse over the course of two years despite warnings.
Outsourcing and construction giant Carillion – which employs 20,000 British people – went into liquidation on Monday after issuing a major profits warning last year.
It has public sector or public/private partnership contracts worth a staggering £1.7bn, including providing school dinners, cleaning and catering at NHS hospitals, building HS2 and maintaining 50,000 army base homes for the Ministry of Defence.