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SPRINGFIELD, Ill. – A key panel unanimously recommended impeachment for Gov. Rod Blagojevich on Thursday, setting up a vote that could make him the first governor to face such fate in Illinois' sordid political history. Blagojevich should lose his job for abusing power, mismanaging government and committing possible criminal acts, including federal allegations he tried to sell off a U.S. Senate seat, the special committee concluded.

Rep. Jack Franks (D-Woodstock) votes to recommend the impeachment of Illinois Gov. Rod Blagojevich

The governor's office issued a statement calling the panel's proceedings flawed and biased.

The full House could vote as early as Friday morning. A vote for impeachment would trigger a Senate trial to decide whether the second-term Democrat should be removed from office.

Many on the 21-member special committee called it a sad day for Illinois, but Rep. Bill Black disagreed.

"I think this is a good, glad, happy day for Illinois because it points out that nobody is above the law," said Black, a Republican. "There have been egregious abuses if half of what we read is true."

Blagojevich denies any wrongdoing and his office's statement called the panel's vote a "foregone conclusion" resulting from proceedings where his team was "never given the chance to put on any kind of defense."

The statement also assumes the full House will vote to impeach.

"When the case moves to the Senate, an actual judge will preside over the hearings, and the Governor believes the outcome will be much different," it reads.

Spokesman Lucio Guerrero said earlier there was no chance Blagojevich would resign before the full House decision. Blagojevich's attorneys left the hearing before the committee voted.

The committee's report said that the citizens of Illinois "must have confidence that their governor will faithfully serve the people and put their interests before his own. It is with profound regret that the committee finds that our current governor has not done so."

Blagojevich was arrested Dec. 9 on federal charges that include allegations he schemed to profit from his power to name President-elect Barack Obama's replacement in the Senate.

He later appointed Roland Burris to fill the Senate seat, and Burris testified Thursday that he did not make a deal with the governor to win the plum position.

"There was nothing .... legal, personal, or political exchanged for my appointment to this seat," Burris testified under oath.

While the governor maintains his innocence, the report notes he did not appear before the committee to explain himself. "The committee is entitled to balance his complete silence against sworn testimony from a federal agent," it says.

The committee's report recounts the federal charges, relying on a sworn affidavit from an FBI agent describing tape-recorded conversations in which Blagojevich discussed using the seat to land a job for himself or his wife. The governor also is quoted on the need to hide any evidence of a trade-off.

"The committee believes that this information is sufficiently credible to demonstrate an abuse of office of the highest magnitude," the report says.

It also lays out allegations separate from the criminal charges — that Blagojevich expanded a health care program without proper authority, that he circumvented hiring laws to give jobs to political allies, that he spent millions of dollars on foreign flu vaccine that he knew wasn't needed and couldn't be brought into the country.

The committee finished its work as chances grew dimmer that lawmakers would get transcripts of Blagojevich's secretly recorded conversations.

Court hearings on the release of the transcripts could run into early February, U.S. District Chief Judge James F. Holderman said Thursday.

Meanwhile, Blagojevich's defense attorneys urged Holderman to throw U.S. Attorney Patrick J. Fitzgerald and all of his assistants off the case, charging in a motion that Fitzgerald violated rules about pretrial publicity at a Dec. 9 news conference announcing the charges.

WASHINGTON – New Mexico Gov. Bill Richardson abandoned his nomination to become commerce secretary under pressure of a grand jury investigation into a state contract awarded to his political donors — an investigation that threatened to embarrass President-elect Barack Obama.

AFP/Getty Images/File – Bill Richardson, pictured in 2008, president-elect Barack Obama's pick to be commerce secretary,

Richardson insisted he would be cleared in the investigation and Obama stood by the governor as an "outstanding public servant." But both men said it has become clear that a grand jury probe would not be finished in time for Richardson's confirmation hearings and could keep him from filling the post in a timely matter.

Richardson's withdrawal was the first disruption of Obama's Cabinet process and the second "pay-to-play" investigation that has touched Obama's transition to the presidency. The president-elect has remained above the fray in both the case of arrested Illinois Gov. Rod Blagojevich and the New Mexico case.

A federal grand jury is investigating how a California company that contributed to Richardson's political activities won a New Mexico transportation contract worth nearly $1.5 million. Richardson said in a statement issued by the Obama transition office that the investigation could take weeks or months but expressed confidence it will show he and his administration acted properly.

Obama spokesman Robert Gibbs said he expected a new commerce secretary to be nominated soon but didn't have a timetable. Gibbs said the problem with Richardson's nomination wasn't a matter that those tasked to look into his background missed something.

"I think the totality of our Cabinet picks is impressive and I think our vetters have done a good job," Gibbs told reporters traveling with Obama as he moved to Washington on Sunday night.

A senior Obama adviser said Richardson gave assurances before he was nominated last month that he would come out fine in the investigation and the president-elect had no reason to doubt it. But as the grand jury continued to pursue the case, it became clear that confirmation hearings would have to be delayed for six weeks or even longer until the investigation was complete, said the adviser, speaking on condition of anonymity about the discussions because they were private.

Aides to both men insisted that Richardson made the decision to withdraw and was not pushed out by Obama. But one Democrat involved in discussions over the matter said transition officials became increasingly nervous during the last couple of weeks that the investigation was a bigger problem than Richardson had originally indicated.

Richardson spokesman Gilbert Gallegos said the governor believed the grand jury matter would be cleared up by this time, but decided to withdraw when it became clear it wouldn't. "It was the governor's idea, and his decision," Gallegos said.

Obama said he has accepted Richardson's withdrawal, first reported by NBC News, "with deep regret."

"Governor Richardson is an outstanding public servant and would have brought to the job of Commerce Secretary and our economic team great insights accumulated through an extraordinary career in federal and state office," Obama said in a statement. "It is a measure of his willingness to put the nation first that he has removed himself as a candidate for the Cabinet to avoid any delay in filling this important economic post at this critical time. Although we must move quickly to fill the void left by Governor Richardson's decision, I look forward to his future service to our country and in my administration."

Richardson said in his statement that he will remain as governor and told Obama, "I am eager to serve in the future in any way he deems useful."

"I have concluded that the ongoing investigation also would have forced an untenable delay in the confirmation process," Richardson said. "Given the gravity of the economic situation the nation is facing, I could not in good conscience ask the president-elect and his administration to delay for one day the important work that needs to be done."

The announcement came ahead of Obama's Monday meetings with congressional leaders on a massive economic recovery bill he wants lawmakers to pass quickly. Obama transition officials said Richardson's withdrawal would not affect the stimulus plan because the Commerce Department was not heavily involved.

A person familiar with the investigation in New Mexico has told The Associated Press that the grand jury is looking into possible "pay-to-play" dealings between CDR Financial Products and someone in a position to push the contract through with the state of New Mexico.

State documents show CDR was paid a total of $1.48 million in 2004 and 2005 for its work on a transportation program.

In a statement issued Sunday night, CDR CEO David Rubin described Richardson as "an exceptionally able and dedicated public official, who was highly deserving of the opportunity to hold a cabinet-level position in the new Obama Administration." Rubin also said CDR "adamantly doesn't practice pay-for-play under any circumstance on any playing field."

Richardson ran against Obama in the Democratic presidential primary, but withdrew after a poor showing in the Iowa caucuses and New Hampshire primary.

He is one of the most prominent Hispanics in the Democratic Party, having served in Congress and as President Clinton's ambassador to the United Nations and energy secretary. As governor, he has kept up an international profile with a specialty in dealing with rogue nations. Obama also considered him to be secretary of state.

CDR and Rubin have contributed at least $110,000 to three political committees formed by Richardson, according to an AP review of campaign finance records.

The largest donation, $75,000, was made by CDR in June 2004 — a couple of months after the transportation financing arrangement won state approval — to a political committee that Richardson established before the Democratic National Convention that year.

In the Illinois case, Blagojevich is accused of trying to sell the Senate seat that Obama gave up to become president. Obama and two of his top aides have been interviewed by the U.S. attorney's office pursuing the case but have denied any knowledge of such a scheme and have not been accused by prosecutors of any wrongdoing.