CHICAGO (AP):

United States President-elect Barack Obama said yesterday he was "appalled and disappointed" over allegations the Illinois governor tried to sell his vacant US Senate seat and insisted there was no involvement by himself or his staff. He vowed to release the results of an internal review in a matter of days.

Illinois Governor Rod Blagojevich was arrested Tuesday on charges that he put Obama's seat up for bidding. The governor has ignored calls for his resignation and retains the power to appoint Obama's replacement.

Nothing in the federal complaint suggests any wrongdoing by Obama or his staff. But the accusations against Blagojevich are an unwelcome distraction to Obama's transition, bringing fresh attention to some of the unsavory characters that have connections, however distant, to Obama and to questions of whether he can follow through on his message of change and clean government.

Positive mood

Blagojevich, meanwhile, went to work in his Chicago office in what a spokesman described in an "upbeat, positive" mood. Spokesman Lucio Guerrero added that he doesn't know if Blagojevich will step down.

Illinois' attorney general threatened to go to the state Supreme Court to have the governor declared unfit to hold office if he doesn't resign soon or get impeached by the Legislature.

State Attorney General Lisa Madigan told CNN she "won't wait terribly long," but wants a signal from lawmakers if they will move quickly on impeachment proceedings. Madigan is a long-time Blagojevich foe who is considering a run for governor in 2010.

Legislative leaders planned a special session Monday to strip Blagojevich of his power to pick a new US senator, putting the decision in the hands of Illinois voters instead. Lawmakers also prepared to discuss the possibility of impeachment.

The White House yesterday said President George W. Bush finds Blagojevich's alleged behaviour "astounding". Obama said he was "as appalled and disappointed as anybody" by the allegations.