Richardson withdraws from commerce post

SANTA FE (KRQE) - Gov. Bill Richardson, D-N.M., withdrew his name as the nominee for Commerce Secretary Sunday because of a looming federal grand jury investigation into a fat state contract for a California company that contributed to his political activities.

CNN is citing two Democratic strategists who said that Obama's aides pushed for the governor's withdrawal to avoid ethical distractions.

The job of commerce secretary wasn't Richardson's first choice for an Obama cabinet post, but it appeared the governor was looking forward to the position after the formal announcement on Dec. 3, 2008.

"We will create technologies the world is seeking while creating millions of new jobs," Richardson said at his nomination.

Less than a month later, word surfaced that a federal grand jury was meeting in Albuquerque to investigate two contracts with a California based financial advisory firm named CDR.

The contracts in question totaled $1.48 million.

Around the time the company got the contracts, CDR made contributions of almost $100,000 to two of Richardson's political committees.

According to published reports, the FBI and the Grand Jury are trying to determine if anyone from Richardson's office pressured the state to select CDR for the contracts.

The investigation is the reason why Richardson chose to back out of the commerce secretary position.

In a statement released Sunday, President Elect Barack Obama praised Richardson, and commended him for putting the nation first.

"It is a measure of his willingness to put the nation first that he has removed himself as a candidate for the Cabinet in order to avoid any delay in filling this important economic post at this critical time," Obama said.

In his statement, Richardson said, "Let me say unequivocally that I and my Administration have acted properly in all matters and that this investigation will bear out that fact. But I have concluded that the ongoing investigation also would have forced an untenable delay in the confirmation process. 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."

CNN is quoting Democratic sources as saying that Richardson was asked to withdraw. One of the sources said that Richardson was "stunned."

However, Richardson's spokesperson Gilbert Gallegos said the decision was made entirely by the governor, and that no one in the Obama transition team asked him to withdraw his nomination.

Obama said that he'll move quickly to find another nominee for the cabinet position.
* Reporter: Michael Paluska
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Why do you think Governor Richardson withdrew from his nomination?

CDR Financial Products, Inc. spokesperson Allan Ripp said,
"The firm adamantly doesn't practice pay-for-play under any circumstance on any playing field. It is pay for performance, pay for expertise, pay for track record, and pay for merit,"
Do you believe this? Why or why not?

How important do you think it is for Obama to find another nominee quickly?
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