Excessive heat watch in effect through Sunday

MPR News helps you turn down the noise and build shared understanding. Turn up your support for this public resource and keep trusted journalism accessible to all. 

Turn Up Your Support

New Mexico Gov. Bill Richardson on Sunday
announced that he was withdrawing his nomination to be
President-elect Barack Obama's commerce secretary amid a grand jury
investigation into how some of his political donors won a lucrative
state contract.


      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 more than $1 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.


      "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."


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


      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 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. "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."


      A person familiar with the proceedings 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.


      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 rouge nations. Obama also considered him to be secretary of
state.


      CDR and its CEO, David 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.

Gallery

Politics and Government News

New Mexico Gov. Bill Richardson on Sunday
announced that he was withdrawing his nomination to be
President-elect Barack Obama's commerce secretary amid a grand jury
investigation into how some of his political donors won a lucrative
state contract.


Richardson withdraws bid to be commerce secretary

Go Deeper.

Like this?