Another Commerce Sec falls by the wayside

Is there a jinx on the post of Commerce Secretary in Barack Obama's cabinet? It was announced on Sunday that Bill Richardson, the Hispanic governor of New Mexico and a former candidate in the 2008 Democratic race to the White House, has withdrawn his name as nominee for the post.

He is the second person to do so, following the withdrawal of Penny Pritzker back in November. Pritzker, the 49-year-old Hyatt hotel heiress who ran Obama's presidential campaign fund, bowed out before being formally nominated for the post. She reportedly decided she could not disentangle herself from her vast financial holdings - she is a billionairess - in order to meet Obama's strict standards of service.

Now Richardson has felt compelled to pull out because he is facing a federal grand jury investigation into 'pay to play' allegations in New Mexico.

Investigators are examining whether Richardson and members of his administration improperly steered New Mexico government contracts to a California-based financial products firm, CDR, in return for financial contributions. David Rubin, who founded CDR, was a contributor to Richardson's campaign for the Democratic presidential nomination - a race he gave up early in the primaries in order to endorse Obama.

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

President-elect Obama has accepted Richardson's request to withdraw with "deep regret". He said: "It is a measure of his [Richardson's] 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."

The New Mexico investigation has been known about for a while. Initially, it was not thought to be a worry for Richardson or Obama. But with the cloud hanging over Illinois governor Rod Blagojevich and his alleged attempt to 'sell' Obama's vacated seat in the US Senate, this was one 'pay to play' saga too many.

Democratic strategist Mary Anne Marsh told Fox News that Richardson "was going to have a very difficult time getting through this nomination".

Ironically, there were those who greeted Richardson's nomination a month ago with the suggestion that Commerce was not a big enough job for a man with such a good CV. As reported here, some commentators argued that Obama was showing signs - like other presidents before him - of not rewarding senior Latino Democrats sufficiently.

FIRST POSTED JANUARY 5, 2009