Obama's selection for commerce secretary bites the dust

Obama's Cabinet selection process took a body blow Sunday. New Mexico Gov. Bill Richardson on Sunday announced that he was withdrawing his nomination to be commerce secretary. There is a federal grand jury investigating how a California company that contributed to Richardson's political activities won a New Mexico transportation contract for one million dollars. In the long tradition of Democratic politicians accused of corruption, Richardson is claiming innocence and refusing to resign as Governor of New Mexico.

Richardson withdraws bid to be commerce secretary
Jan 4 04:15 PM US/Eastern
By NEDRA PICKLER
Associated Press Writer

WASHINGTON (AP) - 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." Full story here.