RPT-UPDATE 4-White House blocks ambassador's impeachment testimony; lawmakers vow subpoena

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(Repeating without changes to widen distribution)

* Sondland 'stands ready to testify', his lawyer says

* derides impeachment probe as 'a kangaroo court'

* Schiff says blocking testimony is evidence of obstruction

By Richard Cowan and David Morgan

WASHINGTON, Oct 8 (Reuters) - The administration on Tuesday blocked an ambassador from testifying to the U.S. House of Representatives' impeachment investigation of President Donald 's dealings with Ukraine, a move top House Democrats vowed to counter with a subpoena.

The chairmen of three House committees leading the impeachment investigation said they would compel testimony from U.S. Ambassador to the European Union Gordon Sondland, a donor who started his diplomatic job in July. The investigators are interested in what the ambassador knew and what his role was in 's efforts to get Ukraine to probe former Vice President Joe Biden, who leads the field of potential challengers to the Republican president.

Through his lawyer on Tuesday, Sondland said he hoped "the issues raised by the State Department that preclude his testimony will be resolved promptly."

"He stands ready to testify on short notice, whenever he is permitted to appear," Sondland's lawyer, Robert Luskin, said in a statement.

State Department officials could not be immediately reached to comment on what issues had blocked his testimony.

The impeachment probe is focusing on a whistleblower's allegations that used nearly $400 million in U.S. military aid to secure a promise from Ukraine's president to investigate Biden, a leading candidate for the 2020 Democratic presidential nomination. The whistleblower's legal team was in the final stages of talks for the intelligence officer to speak to both Democratic and Republican-led congressional intelligence committees as early as this week, congressional officials said.

Representative Adam Schiff, the Democratic chairman of the House intelligence committee spearheading the impeachment probe, told reporters the move to block Sondland from testifying or turning over his text messages or emails was obstruction.

"We will consider this act today ... to be further acts of obstruction of a coequal branch of government," Schiff told reporters.

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Sondland was a key witness for the House Foreign Affairs, Intelligence and Oversight Committees, whose staff had been expected to ask him why he became involved in dealings with Ukraine, which is not a member of the EU.

has derided the impeachment inquiry and has denied he did anything wrong in a July 25 phone call with Ukrainian President Volodymyr Zelenskiy in which pushed for an investigation of Biden and his son.

"I would love to send Ambassador Sondland, a really good man and great American, to testify, but unfortunately he would be testifying before a totally compromised kangaroo court, where Republicans' rights have been taken away, and true facts are not allowed out for the public. ... to see," wrote on Twitter.

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According to text messages released by House committee leaders last week, Sondland was heavily involved in contacts with Zelenskiy as he sought a meeting with , and Ukrainian officials expressed concern at the administration's decision to block U.S. military assistance for Kiev.

In one of the texts, for example, Sondland emphasized that "really wants the deliverable."

Following the allegations that pressured Zelenskiy to investigate Biden while withholding the military aid, House Speaker Nancy Pelosi announced a formal impeachment investigation last month.

Concerns about the July 25 call, and possible threats to Ukraine, came to the attention of Congress in a report by a whistleblower. On Sunday, lawyers said a second whistleblower had come forward to substantiate that complaint.

NEGOTIATIONS ON WHISTLEBLOWER TESTIMONY

Sondland's appearance would have followed officials, including the former U.S. special envoy for Ukraine, Kurt Volker, and Michael Atkinson, the inspector general of the U.S. intelligence community.

Another career diplomat, Marie Yovanovitch, is scheduled to meet with the committees behind closed doors on Friday. Yovanovitch was the U.S. ambassador to Ukraine until recalled her in May before her term was up, after the president's supporters questioned her loyalty.

Congressional staff and lawyers for the first whistleblower, a U.S. intelligence officer, are close to making final arrangements for the witness to speak to Congressional investigators away from Capitol Hill as early as this week, a source close to the parties said on Tuesday.

The first whistleblower's lawyers are in discussions with the Democratic-led House and Republican-led Senate intelligence committees, a Congressional official said. All the talks include efforts to keep the whistleblower's identity concealed from committee members and the public.

has called for the whistleblower to be publicly identified.

Asked whether House Republicans could take legal action to unmask the whistleblower's identity, Republican Representative Jim Jordan said: "I think the American people have the right to know who the whistleblower is. But we're not going to do that."

The impeachment inquiry has heightened bitter partisan divisions in Congress. 's fellow Republicans control the Senate where a trial on whether to oust the president would be held if the House ultimately votes to impeach him.

The White House was expected to tell Pelosi this week that it would ignore lawmakers' demands for documents until the House holds a vote to approve the impeachment inquiry.

Pelosi says a vote is not needed, although Democrats say the House would back the inquiry if there were a vote.

(Reporting by Richard Coawn and David Morgan, additional reporting by Patricia Zengerle, Mark Hosenball, Makini Brice, and Susan Heavey; Writing by Patricia Zengerle and Paul Simao; Editing by Scott Malone, Cynthia Osterman and David Gregorio)

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