REFUSING to compensate inmates for property destroyed by prison officers after the Port Augusta prison riot was "unjust", the Ombudsman has found.

Correctional Services Minister Tom Koutsantonis was yesterday unrepentant, declaring there was "no chance on Earth" that he would reimburse prisoners who damaged property in a riot and warning that compensation could encourage future riots.

About 40 inmates seized control of Bluebush cell block during the 2008 riots and caused extensive damage, including smashing eaves linings, window sealants and floor tiles all containing asbestos.

Ombudsman Richard Bingham found that guards boxed and bagged inmates' belongings and destroyed them, citing potential asbestos contamination.

Prison officials subsequently refused to compensate inmates for the the destroyed property, despite Mr Bingham's finding "no evidence" it had been exposed to dangerous levels of asbestos contamination. He also found some prisoners who were not directly involved in causing damage had their property destroyed.

"The subsequent blanket denial of reimbursement to the prisoners for property damaged during the disturbance did not cite any legislative authority," Mr Bingham states.

"The department's decision to deny reimbursement to every prisoner for the recorded value of their property was an unfair penalty on those prisoners who were not directly responsible for the disturbance or the damage.

"This was not unlawful, but was unjust," he states.

Mr Koutsantonis said all prisoners had a responsibility to alert officials to planned violence and deserved to be punished for any involvement.

"They're not in prison to exercise their democratic rights. They're in to rehabilitate and amend their behaviour and think about the victims and chaos they've caused," he said.

"If any prisoner sees another misbehaving, attempting an escape or attempting to cause a disruption, we expect them to co-operate with Corrections. All prisoners are expected to behave.

"While I'm minister, there is no chance on Earth that I'm going to reimburse prisoners who have damaged property in a riot."