(UPDATE: clarifies first two paragraphs about Holder talking to prosecutors)

U.S. Attorney General Eric Holder had some pointed words for prosecutors on Wednesday after the fumbling of the corruption case against former Republican Senator Ted Stevens that the government ultimately had to drop because evidence was withheld from the defense team.

He warned government lawyers at a conference that the case had threatened to undermine the Justice Department’s credibility for providing defendants all the material against them as required by law.

“Our adversarial system for criminal trials can only result in justice if the discovery process is conducted by the government fairly, ethically, and according to the rule of law,” Holder said at a National Black Prosecutors Association luncheon in Memphis.

He said that the agency was reviewing its compliance and that “we will correct any errors and we will see to it, once again, that justice is our primary goal.”

In October a federal jury found Stevens guilty of seven counts of lying on a Senate disclosure form to conceal $250,000 in gifts and home renovations from an oil executive and other friends.

In one of his first decisions after being confirmed as President Barack Obama’s chief law enforcement officer, Holder ordered the case against the long-time Alaska senator be abandoned after a review showed that prosecutors did not turn over to the defense information that could have helped Stevens’ case.

Stevens was the longest-serving Republican in the U.S. Senate before he lost his seat in the 2008 election — a loss some conservative Republicans have blamed on the prosecution. Democrat Mark Begich won the seat in a narrow victory.

For more Reuters political news, click here.

- Photo credit: Reuters/Larry Downing (Holder at a news conference last month)

Please sir, can I have some more? CEOs of General Motors, Ford and Chrysler make their case for a $25 billion bailout to the House of Representatives, one day after enduring a skeptical reception in the Senate. A vote could come as early as today, but Senate backers say they might not have the support they need.
 
Testimony to the House Financial Services Committee gets underway at 10 a.m.
    
In Chicago, President-elect Barack Obama continues to assemble his administration. Eric Holder, a former Justice Department official under President Bill Clinton, emerged yesterday as a possible pick for attorney general, while the Wall Street Journal reports that Clinton himself offered to submit his future charitable and business activities for ethics review if wife Hillary is tapped for Secretary of State.

Formal announcements could come on Friday, a source tells Reuters.   
   
In the Senate, Democrats have edged closer to a critical 60-seat majority after Anchorage, Alaska mayor Mark Begich declared victory over incumbent Republican Ted Stevens, a convicted felon. That gives Democrats control of at least 58 seats, with races in Georgia and Minnesota still hanging in the balance.
 
A recount in the Minnesota race between incumbent Republican Norm Coleman and Democratic challenger Al Franken, a former comedian, begins today. Franken himself si making the rounds in Washington to raise money and huddle with his fellow Democrats.

For a change, the stock market is not expected to get off to a dismal start today. Hewlett-Packard’s reassuring quarterly results and profit outlook are expected to offset worries about the deeping global economic slump.
   
And finally, Happy World Toilet Day! The advocacy group Water Advocates says 2.5 billion people don’t have access to a toilet, leading to millions of preventable deaths each year from exposure to human waste. The group holds an event in front of the Capitol at 12:30 p.m. to draw attention to the problem.

ANCHORAGE - Gov. Sarah Palin has gone home to Alaska, but her return to the national political stage may come sooner than the 2012 U.S. presidential campaign.

If Republican Sen. Ted Stevens maintains his slim lead over Anchorage Mayor Mark Begich, it could once again thrust Palin into the spotlight. The 84-year-old Stevens could be re-elected for an eighth term despite being convicted of corruption last month. His conviction prompted calls for his resignation from Republican presidential candidate John McCain and Palin, his running mate. Stevens has vowed to fight on even though a convicted felon has never served in the U.S. Senate.

The conviction came a week before election day — too late to replace the longest-serving Republican on ballots in Alaska. If Stevens wins the election and then relinquishes his seat, that’s when things could get interesting.

It would force a special election 60 to 90 days from the time the vacancy occurs. Alaska’s Division of Elections said Palin would make a temporary appointment to hold the seat until a new senator is chosen by special election. One candidate being discussed in Alaska’s Republican circles? Yes, the governor herself.  If Palin doesn’t take that step, she could also play the role of kingmaker and hand a political ally the tag of incumbent heading into the special election.

There is some debate over whether Palin has the right to temporarily appoint a person to the Senate. Proponents of a citizen initiative passed in 2004 said that measure stripped the governor of the right to make Senate appointments — even temporary ones. The initiative was passed after then-Gov. Frank Murkowski appointed his daughter Lisa to the Senate seat he vacated to become Alaska governor.

Palin, who returned to Alaska Wednesday night, seems to have retracted her earlier call for Stevens to resign. Speaking to reporters at the Anchorage international airport, Palin said: “The people of Alaska just spoke. They said that they want him as their senator.”

Well, not every Alaskan has spoken yet. At last count, there are still at least 70,000 ballots to be counted and Begich is trailing by about 3,000 votes. If “Uncle Ted” can pull this out, we might hear from “Sarah Barracuda” sooner than we thought.

Click here for more Reuters 2008 campaign coverage.

Photo credit: Reuters/Mike Blake (Palin waves to crowd after McCain delivered his concession speech in Phoenix on Nov. 4)

WASHINGTON - Alaska Sen. Ted Stevens is an icon in Alaska where he has provided plenty of federal dollars and even has the airport in Anchorage named after him. But that might not enough to help the 84-year-old senator — the longest-serving Senate Republican in U.S. history – to win re-election next week.

“Just because they name the airport after you, doesn’t mean they won’t throw you out of office,” said Nathan Gonzales of the nonpartisan Rothenberg Political Report.

Stevens, who was found guilty on all seven counts of lying on Senate disclosure forms to hide more than $250,000 in home renovations and other gifts from the head of Alaska oil services company VECO Corp., already had been facing a tough race against Anchorage Mayor Mark Begich in an political environment that has favored Democrats.

“Stevens was already in a very competitive race, and this makes it more difficult,” Gonzales said. “Still, I wouldn’t count Stevens out because he is an icon in the state.”

Republicans have had an uphill battle this year trying to protect some 23 of their Senate seats that are up this election cycle while Democrats only have 12 to defend. Democrats are tipped to win at least a few seats held by Republicans including in Virginia and New Mexico.

Stevens won his seventh term in 2002 with 79 percent of the vote.

Click here for more Reuters 2008 campaign coverage. 

- Photo credit: Reuters/Mitch Dumke (Stevens leaves U.S. District Courthouse after being convicted on corruption charges)