Bill Richardson who was picked up by the US President-elect, Barack Obama, as his commerce secretary said he is withdrawing because of the unanswered questions about a federal grand jury investigation in New Mexico State, of which he is the Governor.

Obama has accepted the withdrawal with deep regret. This is said to be the first major blow to the upcoming Obama administration even before it could take off. If confirmed, Richardson would have been the highest ranking Hispanic in the Obama administration.

In an email statement, issued to the media yesterday, Richardson said he has decided to withdraw from the nomination Secretary of Commerce because of "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."

Media reports said CDR Financial Products Inc, a California-based company, won nearly USD 1.5 million in contracts from New Mexico Finance Authority in 2004 after its president and founder David Rubin gave thousands to Richardson.

This included money that helped Richardson underwrite his expenses at that year's Democratic National Convention and also for his unsuccessful presidential bid.

Asserting that he and his administration have acted properly in all matters and that this investigation will bear out that fact, Richardson said: "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, he said: "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."

As of now, Richardson said, he would continue to be the Governor of New Mexico, a job which he loves the most.

"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 in order to avoid any delay in filling this important economic post at this critical time," Obama said.

Richardson served as energy secretary and the US Ambassador to the UN during the presidency of Bill Clinton.

New Mexico Governor Bill Richardson (R) was nominated by President-elect Barack Obama to be the US commerce. | Photograph: John Gress/Reuters

Text: PTI