Illinois refuses to pay for governor's defense

CHICAGO (Reuters) - The top legal officer in Illinois told Gov. Rod Blagojevich on Thursday the state will not pay for his defense against charges he tried to sell President-elect Barack Obama's vacated U.S. Senate seat.

The Democratic governor had piled up significant legal bills from a five-year federal investigation even before being charged last week he conspired to bribe and commit fraud in a scheme to swap political favors, including the choice of Obama's replacement, for cash, jobs or other considerations.

Federal prosecutors may also try to freeze the governor's $3 million-plus campaign fund so he cannot use it for his defense, Blagojevich's lawyer Edward Genson said.

The scandal has been a distraction for Obama and his team as he announces cabinet choices and lays out plans for dealing with the recession and other crises once he becomes president on January 20. Obama is not implicated in the case.

Through his lawyers the two-term governor, 52, has denied any wrongdoing and shown no willingness to resign.

Illinois Attorney General Lisa Madigan, also a Democrat, issued a letter signed by her chief of staff telling Genson the state will not pay to defend Blagojevich against either the criminal charges or the impeachment inquiry now in its third day in the state legislature.

"ABSURD"

Genson had said the reimbursement was warranted because the charges against the governor and the impeachment probe were triggered by things that happened in the course of carrying out his official business.

"It is absurd to suggest that taxpayers must finance the defense of a criminal action against Governor Blagojevich, who is accused of corruptly betraying the public trust for personal and financial gain," the letter said.

Madigan's letter said pay was out of the question for the impeachment inquiry because it is a legislative matter and "not a proceeding against the governor in his official capacity."

Obama's seat is likely to remain vacant for some time.

Blagojevich, who has the sole power to fill it, will not do so, Genson said earlier. The impeachment proceedings, likely to last for weeks, could result in Blagojevich being removed from office, in which case the lieutenant governor, also a Democrat, would take over and could then make an appointment. Calls for a special election have been put on hold indefinitely.

The new U.S. Congress when it convenes in January will have Senate Democrats in the majority with 57 of the 100 seats. The Illinois seat will be vacant and the fate of a Minnesota seat now held by a Republican is still undecided pending a recount.

(Editing by Peter Bohan and Howard Goller)