Superintendent John Price, Canterbury District Commander, confirmed tonight police were aware of the Corrections investigation.
"Should the information relating to this investigation be referred to police we will assess and review, then determine the next appropriate steps."
Fairfax said a snapshot of the draft report found "clear evidence" security staff at the prison bought eight covert listening devices from October 2014 to August 2016 and used them to intercept private communications - described as a breach of the Crimes and Corrections acts and Corrections regulations.
"According to the report, 16 staff - the Site Emergency Response Team of elite guards and several dog handlers - told investigators they were instructed to use the devices by senior staff and a manager whose name is redacted," the agency said.
"They did not consider the legality of their actions and assumed they were authorised."
Fairfax reported that the covert operations extended to allowing prisoners access to cellphones and using covert listening devices, both of which are unauthorised in a prison.
It said the draft report found that "management of security operations was poor and in some cases unlawful".
"The review team identified a lack of: record keeping, risk assessments, adherence to legislation, regulations, policy and procedure and a lack of accountability and oversight."
The agency said the report also found that covert cameras were used, mainly in the area "outside the prison building perimeter and around the boundary fence", to identify where contraband was being dropped at night.
"Legal advice showed no breach of legislation, but 'the activity should have been better managed and higher approval sought,'" Fairfax reported.