Obama used SEIU official to deal with Blagojevich, refused to disclose to feds

As federal prosecutors rested their case at 5:00 PM Tuesday in the corruption trial of impeached Illinois governor Rod Blagojevich, it appeared that in the days following the 2008 election, President-elect Barack Obama had been drawn closer than ever to making a deal with Blagojevich regarding his Senate seat.

But it also became clear that in reporting contacts with Blagojevich to federal authorities, Obama concealed a phone call and a face-to-face meeting between Blagojevich and one of Obama's spokesmen.

BREAKING NEWS: Despite repeated promises that he would testify, today Blagojevich declined to testify at his own trial. The defense has rested, and the trial may come to an abrupt and unexpected ending.

Blagojevich is on trial for seeking personal compensation -- either money, or employment for himself (such as a Cabinet appointment) -- in exchange for appointment of the "buyer's" chosen candidate to Obama's vacated Senate seat after the 2008 presidential election.

Obama's chosen candidate was Valerie Jarrett, a fellow Chicago political figure who now serves as a senior advisor at the White House. Rather than speak directly with Blagojevich, Obama asked Tom Balanoff of the Service Employees International Union (SEIU) to convey his offer to Blagojevich.

Balanoff chairs the SEIU's Illinois State Council and is the president of SEIU Local 1, its largest local, whose members include over 40,000 janitors, service workers, and security guards across four states. His help was instrumental in getting Obama and many other Democrats elected.

Balanoff testified at the trial that the night before the 2008 presidential election, Obama called him and said, "Tom, I want to talk to you with regard to the Senate seat." Obama specified that the chosen Senate candidate to be offered to Blagojevich had to be electable in 2010, and claimed that Jarrett would be able to keep the seat in Democratic Party hands.

Balanoff assured Obama that he would "reach out to Blagojevich," and was good on his word. He spoke twice with Blagojevich -- once on the phone, and once in person -- to convince the governor to appoint Jarrett to the Senate seat.

In a show of cooperation with federal prosecutor Pat Fitzgerald's office after Blagojevich was arrested, Obama's staff prepared a report of all contacts between Obama and his staff, and Blagojevich and his staff, concerning the Senate seat. But the report failed to mention these key contacts by Balanoff, on behalf of Obama and Jarrett.

For a president who promised to have the most transparent administration in history, omitting Tom Balanoff and his contacts with Blagojevich, in the final days before Blagojevich was arrested, raises questions about Obama's candor -- and whether he has more to hide in this matter.