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  [VA] Deal turns lose-lose
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ContributorArmyDem 
Last EditedArmyDem  Jan 02, 2006 10:28am
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CategoryNews
MediaNewspaper - Newport News Daily Press
News DateMonday, January 2, 2006 04:00:00 PM UTC0:0
DescriptionVirginia landed in an uncomfortable spotlight with a defense contractor.

BY CHRIS FLORES
247-4738
December 31, 2005

Defense contractor MZM set up shop in Martinsville in southwest Virginia because of a congressman's influence and the Virginia Economic Development Partnership's desire to be flexible in spurring new jobs in rural areas.

Now the company is embroiled in a bribery scandal that has led to the loss of some defense work.

U.S. Rep. Virgil Goode Jr., R-Rocky Mount, accepted donations from MZM at the same time he helped them get the Virginia deal, and he is under scrutiny by government watchdogs and political opponents.

The unusual incentives deal that Virginia cut for MZM could now leave the economically struggling city of Martinsville responsible for some big bills. The project was so much a product of the congressman, it was referred to by economic development officials as "Project Goode."

Goode, who has never been charged with any crimes related to this, has said he was just trying to help his constituents and wasn't influenced by MZM's money, and he recently donated the MZM contributions to charity.

In March 2003, Goode put language in a bill to open a research center in Martinsville that screens foreign companies that work for the Department of Defense, which never requested the center. He also helped get the no-bid contract for MZM, which was sold in August to a New York firm and renamed Athena Innovative Solutions.
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