| | |  Americas & Beyond | January 2009 
New Mexico's Richardson Withdraws His Cabinet Bid
 Nedra Pickler - Associated Press
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| | U.S. President-elect Barack Obama listens as New Mexico Governor Bill Richardson (L) speaks after being introduced as nominee for commerce secretary during a news conference in Chicago, in this December 3, 2008 file photo. Richardson has withdrawn as President-elect Barack Obama's nominee for commerce secretary, an Obama aide said on January 4, 2009. (Reuters/Jeff Haynes/) | |
Washington — New Mexico Gov. Bill Richardson abandoned his nomination to become commerce secretary under pressure of a grand jury investigation into a state contract awarded to his political donors — an investigation that threatened to embarrass President-elect Barack Obama.
Richardson insisted he would be cleared in the investigation, and Obama stood by the governor as an "outstanding public servant." But both men said it has become clear that a grand jury probe would not be finished in time for Richardson's confirmation hearings and could keep him from filling the post in a timely matter.
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 nearly $1.5 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.
Obama spokesman Robert Gibbs said he expected a new commerce secretary to be nominated soon but didn't have a timetable. Gibbs said the problem with Richardson's nomination wasn't a matter that those tasked to look into his background missed something.
"I think the totality of our Cabinet picks is impressive and I think our vetters have done a good job," Gibbs told reporters traveling with Obama as he moved to Washington on Sunday night.
A senior Obama adviser said Richardson gave assurances before he was nominated last month that he would come out fine in the investigation and the president-elect had no reason to doubt it. But as the grand jury continued to pursue the case, it became clear that confirmation hearings would have to be delayed for six weeks or even longer until the investigation was complete, said the adviser, speaking on condition of anonymity about the discussions because they were private.
Aides to both men insisted that Richardson made the decision to withdraw and was not pushed out by Obama. But one Democrat involved in discussions over the matter said transition officials became increasingly nervous during the last couple of weeks that the investigation was a bigger problem than Richardson had originally indicated.
Richardson spokesman Gilbert Gallegos said the governor believed the grand jury matter would be cleared up by this time, but decided to withdraw when it became clear it wouldn't. "It was the governor's idea and his decision," Gallegos said.
Obama said he 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 in a statement. "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."
Richardson said in his statement that he will remain as governor and told Obama, "I am eager to serve in the future in any way he deems useful."
"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."
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 transition officials said Richardson's withdrawal would not affect the stimulus plan because the Commerce Department was not heavily involved.
A person familiar with the investigation in New Mexico 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.
Obama, Richardson Statements on Withdrawal
Associated Press
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Statements from President-elect Barack Obama and New Mexico Gov. Bill Richardson that were released Sunday by Obama's transition office on Richardson's decision to withdraw as Obama's nominee to be commerce secretary:
Obama:
"It is with deep regret that I accept Gov. Bill Richardson's decision to withdraw his name for nomination as the next secretary of commerce. Gov. 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. 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. Although we must move quickly to fill the void left by Gov. Richardson's decision, I look forward to his future service to our country and in my administration."
Richardson:
"For nearly three decades, I have been honored to serve my state and our nation in Congress, at the U.N., as secretary of energy and as governor. So when the president-elect asked me to serve as secretary of commerce, I felt a duty to answer the call. I felt that duty particularly because America is facing such extraordinary economic challenges. The Department of Commerce must play an important role in solving them by helping to grow the new jobs and businesses America so badly needs."
"It is also because of that sense of urgency about the work of the Commerce Department that I have asked the president-elect not to move forward with my nomination at this time. I do so with great sorrow. But a pending investigation of a company that has done business with New Mexico state government promises to extend for several weeks or, perhaps, even months."
"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."
"So, for now, I will remain in the job I love, governor of New Mexico, and will continue to work every day, with Lt. Gov. Diane Denish, to make a positive difference in the lives of New Mexicans. I believe she will be a terrific governor in the future. I appreciate the confidence president-elect Obama has shown in me, and value our friendship and working partnership. I told him that I am eager to serve in the future in any way he deems useful. And like all Americans, I pray for his success and the success of our beloved country." |
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