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I agree that privatization of the prison seems seems like a potentially gray area, but the problem here isn't just the companies running the prison, but the officials receiving contributions from the prison lobby (aka, corruption of the government), but also, utter lack of enforcement of the guidelines set forth as part of the contract agreements between the prison and the government (again, likely due to government corruption). There's nothing special about a government run prison that would make it better/safer than a privately run prison.

And while I'm sure that report is likely fairly accurate, I;m not sure I'd personally use China's state-run media/propaganda network to show my point ;)