Obama calls on Blagojevich to step down

Chicago: United States President-elect Barack Obama urged embattled Illinois governor Rod Blagojevich to step down in the wake of a government corruption scandal involving him attempting to sell Obama's vacant senate seat.

Obama spokesman Robert Gibbs said Blagojevich needed to step down because "under the current circumstances it is difficult for the governor to effectively do his job and serve the people of Illinois."

Blagojevich was arrested early on Tuesday and charged soon after with conspiracy to commit fraud among other charges.

FBI investigators presented tapes of telephone conversations in which Blagojevich allegedly said he would not let the seat go without a price.

The 50 members of the Senate Democratic Caucus called on Blagojevich to step down and refrain from naming Obama's successor, even threatening to refuse to seat any replacement chosen by the Illinois governor.

"In light of your arrest yesterday on alleged federal corruption charges related to that Senate seat, any appointment by you would raise serious questions," the caucus wrote to Blagojevich.

In Washington, Democratic US congressman Jesse Jackson Jr., who waged a public campaign to win Obama's seat, said he had done nothing wrong.

His lawyer identified Jackson as the unnamed Senate hopeful whose "associate" Blagojevich claimed was willing to raise $1 million in exchange for a Senate seat.

"I did not initiate or authorise anyone at any time to promise anything to Governor Blagojevich on my behalf," Jackson said.

"I never sent a message or an emissary to the governor to make an offer, to plead my case or to propose a deal about a US Senate seat, period," he added.