"Democrat Al Weed, campaigning yesterday for U.S. Rep. Virgil H. Goode Jr.'s 5th District congressional seat, called upon Goode to give the city of Martinsville hundreds of thousands of dollars out of his own pocket.

Weed said that thanks to Goode the city might owe that much to the state as a result of its dealings with a scandal-plagued defense contractor.

The defense contractor, MZM Inc., had operated an intelligence center in Martinsville before the company's founder became mired in a political corruption scandal. The center, now under different ownership, could soon close for good because the Pentagon is not renewing its contract to conduct background checks.

Weed contends political contributions to Goode from MZM in 2003 persuaded the congressman to help bring the company to Martinsville, which now could be forced to pay back to Virginia much of the $500,000 the state gave the city to help it accommodate MZM.

'You pocketed the cash, which you then distributed for your own political gain, and you put Martinsville at risk,' Weed said from the top of the steps of Martinsville City Hall. ' . . . Mr. Goode, this is your bill. Will you pay it? You owe it to the people you serve.'

Goode, a Republican, responded with a faxed statement to reporters suggesting that he has no intention of sending a check to Martinsville.

'As much as Mr. Weed wants the whole endeavor to be a failure, it is unclear at this time whether Martinsville will lose any money,' Goode said in the statement.

MZM ran an intelligence center in Martinsville for which Goode urged Congress to appropriate money in 2003, and it is that act -- along with tainted political donations from MZM to Goode -- that Weed hopes to exploit as he tries to unseat the incumbent.

The company's founder, Mitchell Wade, pleaded guilty in February to paying more than $1 million in bribes to a California congressman in exchange for defense contracts. Another company bought MZM last year but may be forced to close the center. The center ran background checks on potential foreign suppliers of products and services to the Defense Department.

The center's shutdown could leave the city of Martinsville on the hook for up to $500,000 because, to help close the deal that brought MZM to Martinsville, the city accepted $500,000 from the state. The state gave the city the money on the conditions that the company invest $4.4 million to upgrade the city building it bought for $400,000; and employ 75 workers at a salary twice the city average.

Facing imminent closure, the center employs about 30 people, far short of the required 75. However, city officials said the company's investment has raised the building's worth to $3.8 million. So they said they do not believe the state will seek reimbursement for the full $500,000 at the end of the year when the terms of the contract are supposed to be met. Weed, though, said Goode should pay that much money out of his own pocket because even if the state writes off the full $500,000, that money ultimately came from state taxpayers.

Weed said it was 'highly unethical' of Goode to work on behalf of MZM in exchange for campaign contributions.

Court records in Wade's case indicate that Wade asked Goode and his staff to seek appropriations for an MZM facility in his district. Also, Wade illegally funneled $46,000 in campaign contributions to Goode by having his employers and his spouses make donations for which he then reimbursed them.

Goode has not been accused of violating the law, and he said he did not know the contributions were illegal. He has since given the MZM donations, more than $90,000, to charities in his district.

'I did not personally benefit from MZM, or from any other entity or from any person,' Goode said in his faxed statement. He added that, in the time the intelligence center has been in Martinsville, its payroll has topped $2 million. 'My hope has always been to bring jobs and investment to our area.'" (Rex Bowman, Richmond Times-Dispatch, August 4, 2006)