ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, June 3, 1994                   TAG: 9406030095
SECTION: CURRENT                    PAGE: NRV-1   EDITION: NEW RIVER VALLEY 
SOURCE: By KATHY LOAN STAFF WRITER
DATELINE: RADFORD                                LENGTH: Medium


STATE POLICE INVESTIGATION UNDER WAY

An anonymous letter alleging theft of city property, bid rigging and conflict of interest has prompted a state police investigation of the city garage and possibly other city departments.

Phil Keith, Montgomery County's commonwealth's attorney, has been appointed special prosecutor to oversee the state police investigation.

"The investigation is in its very infancy," said Bob Perry, assistant special agent in charge with the Salem bureau of state police. "We just started toward the end of last week."

Perry said the allegations were "extremely vague."

"We're looking into the allegations ... and seeing if there is a factual basis for those allegations," Perry said.

An arrest last week by Radford police of a city shop mechanic is indirectly connected to the investigation, Perry said.

Melvin Fred Golden, 46, of Christiansburg, was charged May 26 with grand larceny. A warrant accuses Golden of stealing two Goodyear tires from the city garage on May 24. He is to be arraigned June 13 and a June 20 trial date is set.

Golden has been suspended from his job pending the outcome of the case, City Manager Bob Asbury said.

While Radford's police investigation of that theft and the subsequent charge against Golden was independent of the state police investigation, the letter referred to Golden without using his name, Perry said.

Randal Duncan, Radford's commonwealth's attorney who excused himself from the investigation, said Golden was charged after city employees made statements that they saw Golden remove two dump truck tires from the shop, put them on a truck, leave, then return without the tires. The tires - which had been marked - were later spotted on another person's truck, an employee said.

Duncan said the person who ended up with the tires said he had asked Golden about the type of tires he should buy for a dump truck but was not aware the tires he received were stolen city property.

Asbury said the city had been investigating complaints about the garage before the state police investigation began.

"There had been previous allegations that parts and supplies had not gone where they were supposed to," he said, but no positive evidence was turned up outside of the case in which Golden has been charged.

Perry said the investigation should take several more weeks and that city officials are cooperating.

Mayor Tom Starnes said he learned of the investigation late last week when Asbury informed him.

Starnes said the investigation apparently "zeroes in on one particular department" - the city garage.

He was reluctant to discuss any specifics of the investigation but did say he had heard about allegations of bid-rigging.

Starnes has not spoken with any investigators.

Asked if the investigation was prompted by a whistle-blower, Starnes said: "It sounds to me like that, based on what I have heard."

But Asbury said the whistle-blower is more like a disgruntled employee - or employees - and he thinks he knows who wrote the letter. "We have some disgruntled employees who have had personnel actions" taken against them.

"If the allegations are true, then they have to be pursued. If not, then they're malicious," the city manager said.

Asbury, who had not yet talked with state police Thursday afternoon, said he has the authority to conduct his own investigation and is considering doing that.

The aspect of the investigation that might involve another department apparently focuses on an allegation of bid-rigging and conflict of interest arising from the city's new health insurance contract, but the reason is unclear.

Asbury said the city recently negotiated a new contract with Blue Cross/Blue Shield that takes effect July 1.

Asbury said City Council used a consultant who made an analysis of available carriers and made recommendations. The contract was approved at council's April 25 meeting.

The mayor said the investigation likely will be discussed at the next City Council meeting, which is June 13.

Staff Writer Rick Lindquist contributed information to this report.



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