Holder omitted Blagojevich link from questionnaire/Announced as a ‘special investigator to the Illinois Gaming Board’ in 2004
Before Eric Holder was President-elect Barack Obama’s choice to be attorney general, he was Gov. Blagojevich’s pick to sort out a mess involving Illinois’ long-dormant casino license.
Blagojevich and Holder appeared together at a March 24, 2004, news conference to announce Holder’s role as “special investigator to the Illinois Gaming Board” — a post that was to pay Holder and his Washington, D.C. law firm up to $300,000.
Holder, however, omitted that event from his 47-page response to a Senate Judiciary Committee questionnaire made public this week — an oversight he plans to correct after a Chicago Sun-Times inquiry, Obama’s transition team indicated late Tuesday.
“Eric Holder has given hundreds of press interviews,” Obama transition spokeswoman Stephanie Cutter said in a statement. “He did his best to report them all to the committee, but as he noted in the questionnaire itself, some were undoubtedly missed in the effort to reconstruct a list of them.”
Holder signed the questionnaire on Sunday — five days after Blagojevich’s arrest for allegedly putting Obama’s U.S. Senate seat up for sale. The Judiciary Committee asked him to provide lists and “copies of transcripts or tape recordings of all speeches or talks delivered by you” and “all interviews you have given to newspapers, magazines or other publications.”
The March 2004 Chicago news conference where Holder and Blagojevich spoke was widely covered because of a controversial 4-1 Gaming Board vote earlier that month to allow a casino to be built in Rosemont. That vote defied the recommendation of the board’s staff, which had raised concerns about alleged organized-crime links to the Rosemont casino’s developer.
Besides that, the Gaming Board’s staff had been concerned that the governor had named his close friend and fund-raiser, Christopher G. Kelly, as a “special government agent” to be involved in official state negotiations about the casino. Kelly, the Sun-Times later learned, was a business partner of Tony Rezko, another Blagojevich fund-raiser who had held an option to lease a hotel site next to the proposed casino site in Rosemont.
Rezko, also a former Obama fund-raiser, and Kelly both have denied any wrongdoing related to the casino, though both have been charged in separate, unrelated criminal cases since 2004.
The Sun-Times disclosed Rezko’s interest in the Rosemont hotel site about three weeks before the news conference announcing Holder would be involved in the casino case. Holder was not aware of the story when he opted to get involved, a source said.
In an interview Tuesday, the Gaming Board’s chief investigator in 2004 said the timing of Blagojevich’s appointment of Holder raised the staff’s suspicions.
“The concern was Holder had a bias to do whatever Blagojevich wanted, which was to give the casino to Rosemont,” said Jim Wagner, who was a top Chicago FBI agent before he joined the Gaming Board, from which he retired in December 2005. “We all believed the only reason Holder was coming in was to fashion an investigation that would manipulate the casino into Rosemont.”
Wagner also said the matter should be explored by the Senate Judiciary Committee. “It ought be brought up and vetted totally as to what motivated him to leave it off” the questionnaire, Wagner said.
At the 2004 press conference, Holder stressed he would be independent.
“The governor’s made quite clear to me that he has no preconceived notions as to how this should turn out, that we should follow the facts, let them lead us to wherever they take us and then report to him and to the people of the state with regard to our findings,” he said.
Despite the concerns of the Gaming Board’s staff, Holder ended up a non-factor in the casino matter. The board — this time listening to its staff’s concerns — refused to hire him, and Blagojevich on May 18, 2004, said he was scrapping Holder’s probe.
“Holder and his firm did some preliminary work in anticipation of the engagement, but did not undertake the investigation itself before it was canceled,” said Cutter, the Obama transition team spokeswoman. “Holder and his firm received no compensation from the state for this preparatory work.
“The 2004 press conference,” she said, “was not memorable because Holder’s legal work for the State of Illinois never materialized.”
The state gaming license once slated to be located in Rosemont has been in limbo since Holder’s brief involvement in it. A process to award the license to one of three bidders is expected to wrap up soon. Rosemont — whose officials long have denied organized crime somehow taints their suburb — again is a finalist to become home to a casino, along with Waukegan and Des Plaines.
A former Deputy Attorney General, Holder has faced criticism about his role in President Bill Clinton’s controversial pardon of fugitive Marc Rich. His confirmation hearing is to begin Jan. 15.
Chicago Tribune
Rahm Emanuel talked with governor’s office about who should fill Obama’s Senate seat
Chief of staff for Obama had list of names
By Bob Secter
Rahm Emanuel, President-elect Barack Obama‘s pick to be White House chief of staff, had conversations with Gov. Rod Blagojevich’s administration about who would replace Obama in the U.S. Senate, the Tribune has learned.
The revelation does not suggest Obama’s new gatekeeper was involved in any talk of dealmaking involving the seat. But it does help fill in the gaps surrounding a question that Obama was unable or unwilling to answer this week: Did anyone on his staff have contact with Blagojevich about his choice for the Senate seat?
Blagojevich and John Harris, his former chief of staff, face federal charges in an alleged shakedown involving the vacant Senate seat, which Illinois law grants the governor sole authority to fill.
Obama said Thursday he had never spoken to Blagojevich about the Senate vacancy and was “confident that no representatives” of his had engaged in any dealmaking over the seat with the governor or his team. He also pledged Thursday that in the “next few days” he would explain what contacts his staff may have had with the governor’s office about the Senate vacancy.
Emanuel, who has long been close to both Blagojevich and Obama, has refused to respond to questions about any involvement he may have had with the Blagojevich camp over the Senate pick. A spokeswoman for Emanuel also declined to comment Friday.
One source confirmed that communications between Emanuel and the Blagojevich administration were captured on court-approved wiretaps.
Another source said that contact between the Obama camp and the governor’s administration regarding the Senate seat began the Saturday before the Nov. 4 election, when Emanuel made a call to the cell phone of Harris. The conversation took place around the same time press reports surfaced about Emanuel being approached about taking the high-level White House post should Obama win.
Emanuel delivered a list of candidates who would be “acceptable” to Obama, the source said. On the list were Obama adviser Valerie Jarrett, Illinois Veterans Affairs director Tammy Duckworth, state Comptroller Dan Hynes and U.S. Rep. Jan Schakowsky of Chicago, the source said. All are Democrats.
Sometime after the election, Emanuel called Harris back to add the name of Democratic Atty. Gen. Lisa Madigan to the approved list, the source said.
Blagojevich and Harris, who resigned his state post Friday, are charged with plotting to sell the selection of Obama’s replacement in exchange for lucrative jobs or campaign cash for the governor. Among other things, a government affidavit filed with the charges claimed that Blagojevich had kicked around the idea of using his Senate selection to leverage an appointment to an ambassadorship or Cabinet post in the Obama administration.
Federal authorities have not suggested Obama or his team knew about Blagojevich’s alleged schemes.
In an interview, Schakowsky said she spoke to Emanuel on Thursday and he seemed unfazed by the controversy.
Schakowsky also spoke of a conversation she had with Emanuel shortly after he was named chief of staff. She said she called Emanuel him “to get some intelligence” on whether Obama might approve of her selection as senator.
“He indicated that the president-elect would be fine with certain people and I was one of them,” Schakowsky said.
Schakowsky said it was natural for Obama to take an interest in the selection process for his Senate seat. “It makes perfect sense for the president-elect or his people to have some interaction about filling the seat he was vacating,” she said.
Though now working full-time on Obama’s transition, Emanuel has yet to resign his congressional seat. Illinois law has a different process for filling vacant House seats than Senate seats. When Emanuel resigns, a special election will be held for his replacement.
One alleged scheme outlined in the charges against Blagojevich involves the special election for Emanuel’s seat. The government affidavit said Blagojevich and others were recorded talking about an unnamed “president-elect adviser” concerned about the election for Emanuel’s congressional seat who might help the governor land a new job at a non-profit organization.
Tribune reporter David Heinzmann contributed to this report.
In a recent conversation with House Speaker Nancy Pelosi, Rahm Emanuel offered some advice on a Democratic House leadership race. Pelosi’s response, according to several Democratic sources: It is “an internal House Democratic Caucus matter, and we’ll handle it.”
Democratic insiders say there’s no animosity between Pelosi and Emanuel, who’s leaving his post as chairman of the House Democratic Caucus to become the next White House chief of staff.
But the speaker is laying down the law nonetheless.
In talks with Emanuel and others, sources say, Pelosi has “set parameters” for what she wants from Barack Obama and his White House staff — no surprises, and no backdoor efforts to go around her and other Democratic leaders by cutting deals with moderate New Democrats or conservative Blue Dogs.
Specifically, Pelosi has told Emanuel that she wants to know when representatives of the incoming administration have any contact with her rank-and-file Democrats — and why, sources say.
During the Bush years, the White House set policy, and Republicans on Capitol Hill were expected to follow it. Former Speaker Dennis Hastert (R-Ill.) occasionally lashed out at former White House chief of staff Andy Card or other senior administration aides when he felt they had gone too far. But in general, Republican lawmakers followed Bush’s lead on every major legislative battle, from Iraq to tax and spending bills to anti-terror policies. With the exception of immigration reform, the House fight over the $700 billion Wall Street bailout package and last week’s meltdown over a bailout for the Big Three automakers, Bush got what he wanted from Congress, especially within his own party.
Pelosi and Senate Majority Leader Harry Reid (D-Nev.) are signaling that they won’t tolerate a repeat with a Democrat in the White House and Democratic majorities in the House and the Senate.
Pelosi “is not going to allow Obama to triangulate her,” said a Democratic source close to the leadership. “It’s not going to happen to her.”
Pelosi’s mantra, in a way, is “no surprises.” The speaker wants to be told when Reid is communicating with the Blue Dogs or other factions with her caucus, and she expects the same from Obama when he arrives in the Oval Office, said Democratic sources.
“We certainly are in frequent communication with the [Obama] transition team,” said Brendan Daly, Pelosi’s communications director. Daly noted that Pelosi and Emanuel have long-standing ties — she appointed him to head up the Democratic Congressional Campaign Committee at the start of 2005 — and added that Emanuel often speaks directly with John Lawrence, Pelosi’s chief of staff.
Daly said Pelosi will work closely with Obama and Reid to craft an economic stimulus package early next year, as well as other economic recovery legislation.
“She and President-elect Obama have the same goals,” Daly added. “It’s a matter of working together to get things done.”
Pelosi herself said the same about Obama in an interview with Bloomberg’s Al Hunt last week, stating that “our priorities are the same about creating good-paying jobs.”
But it won’t always be that easy. Capitol Hill veterans predict that, no matter how much goodwill there is at the start of a new administration, there are always battles over policy and legislative priorities between the White House and Congress.
“There is tension. There is going to be tension,” said a Democratic veteran of Capitol Hill. “This is not Hastert. She wants to know what they are up to.”
The Emanuel-Pelosi relationship is a complex one that defies easy explanation. Emanuel was a rising star inside the Democratic Caucus — with many members convinced he would be speaker one day — until Obama tapped him for the West Wing job. In large part, Emanuel owed his rise to Pelosi, who put him in charge of the DCCC, where he helped lead the Democrats back to the House majority after 12 years out of power.
From the DCCC, Emanuel moved up to the chairmanship of the caucus. But both he and Pelosi had stocked the DCCC with their own loyalists after the 2006 election, and they both tried to influence campaign strategy as subtly as possible through these surrogates. At the same time, Emanuel was often jockeying with other members on major legislation, including immigration reform and the Wall Street bailout, but rarely without the speaker’s blessing.
Pelosi sometimes resisted Emanuel’s desire to always be on the attack, but she did respect his insight and his willingness to work hard to achieve legislative and political goals. She refused to back Emanuel when he made noises about running for majority whip, the post now held by Rep. Jim Clyburn (D-S.C.). But when Obama approached him about the chief of staff job, Emanuel consulted Pelosi first.
Yet the two will find themselves on different ends of Pennsylvania Avenue next year, and that will change the nature of their current relationship profoundly.
“Look, they have different goals now,” said an aide to one top Democrat. “Her job is to protect her members; his job is protect Obama. Those can’t always be the same thing.”
This source added: “I think they will do what they can to work together, but these are two strong-willed people who are used to getting their way. There’s bound to be some areas of disagreement. We’ll just have to see how they handle it.”
Part Two
TULLYCAST ALWAYS DELIVERS
The New York Herald Sun 