Aug. 16, 2009 (United Press International) -- Kentucky extended a contract with the firm that runs the Otter Creek Correctional Center despite alleged sexual assaults at the facility, a state monitor said.

The monitor's report said five workers were charged with having sex with inmates during the past three years and the Kentucky State Police are expected to present a similar case to a Floyd County grand jury this month, The (Louisville, Ky.) Courier-Journal reported Sunday.

State Monitor Darrell Neace said staff shortages led to poor employee morale and security concerns.

The state is permitted to impose staffing-level sanctions against the operator, Corrections Corp, of America (NYSE:CXW) , based in Nashville, but has not done so, the newspaper said.

State Department of Corrections Commissioner LaDonna Thompson said understaffing is a problem at all prisons.

Corrections department spokeswoman Lisa Lamb blamed the understaffing problems on pay rates. At the state-run women's prison, starting pay is $18.18 an hour for workers with no corrections experience, and $19.17 an hour for those with experience. Starting pay at Otter Creek is $8.25 an hour.

The state extended the contract with CCA for 60 days while a new two-year contract is negotiated.