Obama's pick for commerce secretary withdraws

OBAMA GETS A SETBACK: Obama's pick for commerce secretary withdraws amid federal probe.

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Washington: Amid the euphoria around his upcoming inauguration, US president-elect Barack Obama faced a setback as his choice of commerce secretary, Bill Richardson, withdrew his nomination due to a federal grand jury investigation.

Withdrawal of New Mexico Governor Richardson's nomination came on Sunday amid reports that a federal grand jury has been looking into whether a California company won a state contract after contributing to Richardson's political causes.

Coming hours before Obama landed in Washington to take up temporary residence ahead of his January 20 inauguration at a hotel across the street from White House, the news added to his political woes over the controversial nomination of a successor to his senate seat.

Federal prosecutors had arrested Illinois Governor Rod Blagojevich, a fellow Democrat on December 9 alleging that he was planning to sell the seat to the highest bidder.

But a defiant Blagojevich, who has the sole authority to fill the vacancy, has brazenly named Roland Burris, a black former state attorney general, a move that members of the Senate Democratic majority have vowed to resist by using a senate procedure.

CNN cited two Democratic strategists outside Obama's transition team as saying that Obama aides pushed Richardson's withdrawal because they did not want an ethical distraction in the wake of the controversy.

Richardson said in a statement that he had decided to step aside because the investigation might go on for months and the challenges facing the nation and new administration were too great for him to be a distraction.

"I have concluded that the ongoing investigation also would have forced an untenable delay in the confirmation process," Richardson added.

"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."