
An inspection of Rainsbrook Secure Training Centre (STC) in Rugby, which is run by G4S, found that there had been "serious incidents of gross misconduct by staff", including some who were in positions of leadership.
Inspectors found evidence of drug use among prison staff and smuggling of contraband for young people held at the establishment, which can hold up to 87 young people aged between 12 and 18.
"Poor staff behaviour has led to some young people being subject to degrading treatment, racist comments, and being cared for by staff who were under the influence of illegal drugs," the inspection report, which was compiled jointly by Ofsted, the Prisons Inspectorate and the Care Quality Commission, states.
"A finding of contraband DVDs in the centre is likely to be attributable to staff smuggling these in and raises a concern that young people were allowed to view inappropriate material they should not have been.
"It also raises a concern that some staff may have colluded with young people to elicit compliance by wholly inappropriate means.
"Senior managers are unable to reassure inspectors that this is not the case."
Inspectors said the examples of gross misconduct were compounded by poor decision-making by senior managers, which had led to delays in young people receiving essential medical diagnosis and treatment, and in referring matters for independent external scrutiny.
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