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Implications of the Rezko letter *** UPDATED x1 ***

Wednesday, Oct 8, 2008 - Posted by Rich Miller

* As you already know, Gov. Blagojevich repeatedly referenced a letter that Tony Rezko sent to his presiding judge. This is a representative quote…

“Tony Rezko sent a letter to a judge. In that letter, he expressly states neither Sen. Obama nor I did anything wrong.”

* That letter will make it impossible to rely solely on Rezko’s word, but it may not rule out Rezko as a witness against the governor. From the Sun-Times’ Eye on Rezko blog

If Rezko does cut a deal with the feds, that letter — sent to a federal judge — will no doubt haunt him as a witness.

As we reported in an earlier story, it isn’t necessarily a deal breaker.

Former prosecutor Zachary Fardon noted in a June 16th story Scott Fawell, former chief of staff to Gov. George Ryan, wrote a similar letter, saying he wouldn’t make up lies about Ryan.
Fawell was the star witness in Ryan’s trial.

“Do I think he could effectively be crossed on this letter? Yes,” Fardon said. “Does that mean they can’t call him or use him [as a witness]? No.”

* Here’s another exchange from yesterday’s not so friendly media availability

REPORTER: Will you resign if you’re indicted?

BLAGOJEVICH: I’m not going to answer dumb questions like that.

REPORTER: Are you worried about your future?

BLAGOJEVICH: Next Question.

REPORTER: Governor. are you worried about your future?

* The AP has a snippet of what prosecutors are asking witnesses about

One of the matters that prosecutors have been interested in learning is who paid for the renovation of Blagojevich’s Chicago home. Rezko’s now defunct Chicago Construction Services was the contractor on the project. One person familiar with the renovation contacted Monday afternoon, speaking only on condition of anonymity because of grand jury secrecy, said he was subpoenaed by federal prosecutors and asked about the project.

“They were looking for basic business dealings, who paid, how much, that sort of thing,” he said. He said the governor’s wife, Patti, paid the bill.

* The reason Gov. Blagojevich ventured forth yesterday was to honor retiring Senate President Emil Jones at Chicago State University

The retiring Jones (D-Chicago) was hailed as nothing short of a hero by those in attendance, from Gov. Rod Blagojevich to interim university president Frank Pogue, who praised Jones for always fighting for South Side interests.

Jones said he was inspired to use his influence to benefit the university by observing how legislators in Springfield banded together to pass projects for other state schools. He blasted news accounts that questioned his motives and said his actions were an attempt at “parity” and “fairness.”

“We learned a lot in Springfield, when they slice the pie,” Jones said of the budget process. “It’s nice to be in the room when you slice the pie. And [sometimes] I get criticized for making sure that a piece of that pie comes back home here, but that’s your job as a lawmaker. To look out for your district, to look out for the young people that attend these institutions.”

CSU isn’t in Jones’ district, but whatever. They named a building after him, so I guess that sorta counts.

*** UPDATE *** No suprise. From the AP

Convicted political fundraiser Tony Rezko’s sentencing is officially on hold.

U.S. District Judge Amy J. St. Eve on Wednesday granted prosecutors’ request to strike Rezko’s scheduled October 28th sentencing date.

St. Eve set a status hearing for December.

* Related…

* Blagojevich to Rezko: Tell the truth

* Blagojevich Talks About New Rezko Developments

* Illinois governor calls on convicted fundraiser to ‘tell the truth’

* Governor not worried about Rezko

* Rezko should tell prosecutors the truth, Blagojevich says

  32 Comments      


Blagojevich: It is what it is *** UPDATED w/ Video ***

Tuesday, Oct 7, 2008 - Posted by Rich Miller

* Give the governor credit for even appearing in public in a week like this

Governor Rod Blagojevich is calling on Tony Rezko to tell the truth, the day after federal prosecutors indicated that the convicted fundraiser might be cooperating with them.

Appearing at a ceremony Tuesday, Blagojevich wouldn’t say whether he was worried about his future now that his friend and fundraiser may be talking to authorities.

* Even though he didn’t really say a whole lot, despite the relentless questions

Blagojevich said Rezko’s decision to seek a sentencing delay “speaks for itself.”

“It is what it is, it speaks for itself,” Blagojevich said. “Let me just say again what I’ve said before, Tony Rezko is a friend of mine, my heart goes out to him and to his family and he like everybody else should tell the truth. And I would point out he sent a letter, Tony Rezko sent a letter to a federal judge where he expressly said that neither Sen. Obama nor I did anything wrong and now we’ve got to respect the process as we’ve been consistently doing and just let it all unfold…”

The governor went on to repeat several times his answer about the letter Rezko sent to a federal judge before being convicted on political corruption charges earlier this year. In the letter, Rezko said he was never involved in any wrongdoing with either Blagojevich or Democratic presidential nominee Barack Obama and wouldn’t make up stories about them in an attempt to benefit himself.

* And wasn’t exactly believable

Also today, the governor dismissed as “much ado about nothing” revelations that federal investigators have interviewed and subpoenaed contractors involved in a $90,000 renovation of Blagojevich’s home by a Rezko-owned company. Agents have focused on who paid for that 2003 work, the Chicago Sun-Times reported Sunday.

While insisting that he and his wife, Patti, paid for the work themselves, the governor today repeated that he would not release contractor invoices, cancelled personal checks or any other documents that might support his claim.

“The canceled checks are where they belong. They’re at the bank. If you feel like you want to go get them, then run ahead and get them,” the governor said.

And while the governor expressed sympathy toward Rezko and his family, as he has done in the past, Blagojevich said he has not communicated with Rezko since his conviction.

“I don’t think he’s in a place where he can take a phone call,” the governor said.

* Listen to the raw audio here, or download the complete press availability by clicking here.

* Favorite question…

“Governor, don’t you sometimes feel like you’re a character in an Edgar Allen Poe story and that the walls are closing in?”

* Next favorite question…

“Will you resign if you’re indicted?”

The second time that question was asked, the governor said he wasn’t going to answer a “stupid question” like that.

* Kass’ one-track mind at work…

“You’ve talked about yourself, but what about Mr. Obama?” […]

“What about Obama and Rezko? Do you think Sen. Obama has to be a little concerned as well?”

*** UPDATE *** Tribune video

  61 Comments      


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Tuesday, Oct 7, 2008 - Posted by Rich Miller

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Ethics, schmethics

Monday, Oct 6, 2008 - Posted by Rich Miller

* The Tribune points out the glaring loophole in Illinois “revolving door” prohibition. The prohbition doesn’t work because waivers are too easy to get

Last week, tollway chief Brian McPartlin announced that he was leaving to become a vice president of McDonough Associates, an engineering and architectural firm that has received more than $30 million in tollway contracts while McPartlin was in charge. He’s asking the state ethics commission for a waiver of the one-year rule, and he’ll almost certainly get it.

Per tollway rules, McPartlin played no role in the McDonough contracts, an agency spokeswoman says. And that’s likely good enough to satisfy the toothless law. Since 2005, 14 applications for waivers have been filed; only one was denied.

In seven of those cases, the ethics commission determined the applicant wasn’t substantially involved in a contract or regulatory decision that directly affected a prospective employer. That’s a pretty squishy requirement, especially when applied to agency chiefs, who are running the show regardless of who makes the day-to-day decisions. Does your boss need to be in the room to influence your decision-making? Probably not. Does that mean he’s not a player? Ha. […]

Granting waivers to employees who can demonstrate they have no conflict of interest sounds fair, in principle. But the law’s wording is so loose that it applies to only the most egregious conflicts, which is not to say that McPartlin’s situation is among them. But if Illinois is serious about stopping the revolving door, it needs to be more realistic about what constitutes a conflict of interest, and less generous about granting waivers. A prohibition doesn’t mean much if you can get a waiver simply by asking for one. [emphasis added]

Exactly.

* Speaking of ethics, the AP takes a nuanced approach to Barack Obama’s claims that he shepherded an earlier ethics bill through the GA…

“When I was in Illinois, I passed the toughest ethics reform in 25 years there, despite the opposition of Democrats and Republicans,” the Democratic presidential candidate told a New Hampshire audience last month.

In fact, Obama was part of an ensemble that negotiated the legislation and built support for it. And the ethics bill passed by lopsided margins of 52-4 in the Senate and 102-3 in the House, although its riskier moments came earlier during those behind-the-scene negotiations that Obama was heavily involved in.

As always with ethics bills, the behind-the-scenes negotiations are the most important part.

* The sticking point on this particular bill was the state’s practice of allowing politicians to convert all of their campaign funds to personal use. The old bulls, who controlled the process, made it clear that they wouldn’t move any bill that contained that language. So, they were essentially bought off with a “grandfather clause” that allowed the old-timers to keep their cash…

The grandfather clause allowed Illinois politicians to continue making personal use of a combined $15 million, an Associated Press analysis showed. Obama was eligible to convert just $14,000 to personal use and chose not to do so.

Obama’s campaign says the loophole was vital to the bill’s success. “Making the law apply retroactively was a poison pill that … would have killed the bill,” said spokesman Justin DeJong.

That’s true. Many old-timers didn’t see a need for an ethics bill at all, let alone one stripped “their money” from their pocketbooks.

Still, critics are right that the bill wasn’t exactly the be-all-end-all that Obama proclaims.

  13 Comments      


This just in…

Friday, Oct 3, 2008 - Posted by Rich Miller

*** 2:20 pm *** I just got a call from someone at today’s con-con ballot problem court hearing. They’ve been at it since 9 this morning, and the hearing continues. Attorney General Madigan’s people are reportedly much more subdued than earlier this week.

You’ll know more when I know more.

* 1:02 pm - The US House has passed the financial bailout/rescue bill. The rollcall can be found at this link.

Three Illinoisans flipped from Monday’s vote: Republican Judy Biggert, and Democrats Jesse Jackson, Jr. and Bobby Rush.

Rep. Jerry Weller, the only member who didn’t vote last time, voted “Yes” today. Here are the “Yes” votes. Those who have any sort of opposition this November are in bold…

* Bean (D)
* Biggert (R) - [FLIP]
* Davis (D)
* Emanuel (D)
* Foster (D)
* Gutierrez (D)
* Hare (D)
* Jackson (D) - [FLIP]
* Kirk (R)
* LaHood (R)
* Rush (D) - [FLIP]
* Schakowsky (D)
* Weller (R)

* Illinoisans voting “No” - with those who have serious or semi-serious November opposition in bold…

* Costello (D)
* Johnson (R)
* Lipinski (D)
* Manzullo (R)
* Roskam (R)
* Shimkus (R)

* 1:46 pm - Judy Biggert’s rationale for flipping

“The volatility in the market is threatening the financial stability of my constituents,” Biggert said. “It is clear that the time for seeking better options has run out. If we don’t act now, those who are least to blame for this mess will suffer the most.”

* Jackson and Rush appear to have been flipped by Barack Obama

Black lawmakers said personal calls from Democratic presidential nominee Barack Obama helped switch them from ‘‘no’’ to ‘‘yes.’’

* From a Jackson press release…

Congressman Jesse L. Jackson Jr. said today he will support an emergency rescue package for the nation’s troubled financial system after getting assurances from Senator Barack Obama that, as president, they “would aggressively regulate predatory lending and force mortgage modifications to prevent foreclosures.”

  38 Comments      


DC paper drastically flubs story; GOP candidate lies about involvement in probe

Friday, Oct 3, 2008 - Posted by Rich Miller

* Remember this story from yesterday?…

FBI agents met with Will County Auditor Stephen Weber for two hours Wednesday morning regarding an investigation the auditor initiated into a countywide office, the Tribune has learned. […]

Sources say the investigation centers on Will County Executive Larry Walsh’s office.

* Well, the Washington Times has twisted that all around in today’s edition

The FBI on Wednesday raided the county offices of a former Illinois state senator who is a poker-playing buddy of Democratic presidential candidate Sen. Barack Obama.

* Um, nope

At 9:45 a.m., Chicago agent Joseph Basile and another man walked into the offices of Will County Auditor Steve Weber. They walked back out again just after 11 a.m.

That was it. They talked to Weber for a bit over an hour and left. There was no “raid” of Walsh’s office. The Washington Times completely flubbed its story.

* Yesterday, I wondered whether this FBI visit might be all about politics. Today we find out that the visit was, indeed, motivated by Walsh’s Republican opponent

The Republican challenger to Will County Executive Larry Walsh sparked what has turned into an FBI examination of Walsh’s connections to a county contractor.

* And it apparently has something to do with campaign contributions to a county vendor…

Dan Kennison, Walsh’s opponent in the November election, said Thursday that he began asking questions about $6,500 given to Walsh’s campaign by individuals who turned out to have family connections to Smith Dawson and Andrews, the lobbying firm hired by the county.

“I gave that information to Mr. Weber,” Kennison said. Kennison said he also has spoken with the FBI, but would not provide details.

* But that’s not what the Republican Kennison told the the Kankakee Daily Journal

Kennison denied any involvement with what happened at the auditor’s office.

“I had nothing to do with this investigation. What I know about this is what I’ve read,” he said, but he added that he thought an investigation should be conducted.

What Kennison “read” in at least one paper was his quote about how he started the whole thing.

Looks like a setup to me.

* Walsh’s response to the campaign contribution stuff…

“I have known the Smiths, and Francis and Jim Smith have been very good friends of mine since I started as a state senator representing Kankakee County,” Walsh said. “If I’m guilty of taking a donation from a family friend, then God help us.”

  15 Comments      


Students now banned from all campus political activity *** Adding: So, were Obama rallies illegal? What about the state fair? ***

Friday, Oct 3, 2008 - Posted by Rich Miller

* The governor’s Office of Executive Inspector General has gone over the edge. According to the Tribune the OEIG has just issued this decree about the state’s ethics law…

…university students, not just employees, were prohibited from participating in political rallies on campus—an assertion at odds with the University of Illinois’ interpretation of the law.

“Anything that benefits a political campaign is prohibited on state property,” said Gilbert Jimenez, deputy inspector general. The results of any investigations of campus activity would be turned over the university’s board of trustees with recommendations for discipline, including possible dismissal, Jimenez said.

So, that means Republican, Democratic and other student political clubs would likely be banned from meeting on campus, despite decades of precedence. And the clubs’ faculty sponsors would be prohibited from attending or probably even being sponsors. Also, under this interpretation, universities could no longer host candidate debates. If anybody complains, the OEIG would launch an investigation. Wonderful.

* And nobody is getting any direction from Attorney General Lisa Madigan

The state attorney general’s office said it was unclear how the state law applied to university employees and whether it applied to students.

Great. How about an interpretation, for crying out loud?

* The U of I claims it won’t enforce the law…

Tom Hardy, a University of Illinois spokesman, said Thursday that the university only wanted to inform its employees of the law and had no intention of enforcing it. The university, he said, would take no action against participants in the pro-Obama rally [held yesterday on campus to protest the goofy rules].

The problem here is that the university could selectively enforce the law down the road in order to get rid of particularly problemmatic faculty, staff or students.

Either the General Assembly needs to change the law or the attorney general needs to do her job and give the universities some guidance here.

…Adding… By the OEIG’s insane logic, both of Barack Obama’s rallies at the Old State Capitol were illegal.

Democratic and Republican days at the Illinois State Fair are also therefore illegal, as are the political party tents at the fairgrounds.

If a college student wears a political buton on the U of I’s quad, can s/he be kicked out of school? Could that same person be kicked off the fairgrounds? I’ve seen plenty of private citizens wearing campaign buttons at the Statehouse. Would that be prohibited as well?

One other point. I spoke to a Democratic women’s organization at the governor’s mansion a few years ago (where I was heartily booed for the first and, so far, only time at a speaking engagement). Since members of the group spoke on behalf of specific politicians that evening, would that sort of meeting be against the law now, too?

…More food for thought… Since the constitutional convention is on the ballot this November, and since both sides of that issue have formed and registered their respective official campaign committees with the State Board of Elections and are actively campaigning, it’s also worth wondering if an upcoming debate at UIUC put together by my intern Kevin Fanning would be banned. Here’s Kevin’s comments from below

I’m hosting a debate on the merits of the Constitutional Convention at the University of Illinois on Oct. 15h, and the Lt. Gov will be participating. Everyone is encouraged to come, especially the Governor and the deputy Inspector General.

* More…

* Column: Pres. White should retract ethics policy

* Students rally against ethics rules

  66 Comments      


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