The "No Drama" Policy in Action: Richardson Withdraws as Commerce Secretary

By Al Giordano

New Mexico Governor Bill Richardson today withdrew his name from nomination for US Commerce Secretary:

A federal grand jury is investigating how a California company that contributed to Richardson's political activities won a lucrative New Mexico state contract...

A person familiar with the proceedings 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.

The Washington Post reported on grand jury activity surrounding the New Mexico contract on December 16:

In the New Mexico case, the FBI and federal prosecutors are investigating how CDR, based in Beverly Hills, Calif., won lucrative fees from the New Mexico Finance Authority in 2004 soon after donating $100,000 to two Richardson organizations.

From 2003 to 2004, CDR Financial gave $75,000 to Sí Se Puede, which paid for expenses at the Democratic National Convention in 2004. CDR's president and founder, David Rubin, also gave $25,000 to Moving America Forward, which funded Richardson's efforts to register Hispanic and American Indian voters.

Two weeks later, Richardson bows out.

Here's the official statement:

STATEMENT OF PRESIDENT ELECT BARACK OBAMA

It is with deep regret that I accept Governor Bill Richardson's decision to withdraw his name for nomination as the next Secretary of Commerce. 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. 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 Governor Richardson's decision, I look forward to his future service to our country and in my administration.

STATEMENT OF GOVERNOR BILL 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 Lieutenant Governor 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.

New Mexico Lieutenant Governor Diane Denish - whose rise to the state's top job is now cut off at the pass - is probably more upset about this development than anybody else.

Obama's key words - "I look forward to his future service to our country and in my administration" - indicate that he doesn't think Richardson's problems will be permanent or long term.

This is how the "no drama" approach to government works. No individual is owed a particular post. And if - even through no fault of his or her own - that person might become a distraction, it's time to step aside until such a time as matters no longer distract.

Now, here's where this latest development gets interesting...

Somewhere in a country called Albany, in a state called New York, Governor David Paterson is reading the newspaper and thinking that if a questionable $100,000 in contributions can derail a cabinet nomination, he sure made the right call in waiting for a bona fide US Senate vacancy before naming his pick.

The New York Times reported yesterday:

An upstate New York developer donated $100,000 to former President Bill Clinton's foundation in November 2004, around the same time that Senator Hillary Rodham Clinton helped secure millions of dollars in federal assistance for the businessman's mall project.

Mrs. Clinton helped enact legislation allowing the developer, Robert J. Congel, to use tax-exempt bonds to help finance the construction of the Destiny USA entertainment and shopping complex, an expansion of the Carousel Center in Syracuse.

Mrs. Clinton also helped secure a provision in a highway bill that set aside $5 million for Destiny USA roadway construction.

It remains to be seen if one hundred-thousand dollar mini-scandal will gain as much traction as another, and whether Richardson's withdrawal might open the exit door for others.

Finally, I opine that US Rep. Xavier Becerra - who reportedly turned down Obama's offer to be US Trade Representative (Becerra's position in House leadership is arguably a more powerful position than trade rep) - could excel at the job of Commerce Secretary.

Never a dull moment, so far, in 2009!

Update: Meanwhile, it's beginning to look a lot like governance. This just in from the Obama transition:

President-elect Barack Obama will meet with House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid on Capitol Hill on Monday.  Vice President-elect Joe Biden will join Obama for a meeting with Democratic and Republican congressional leadership on Capitol Hill on Monday afternoon.  Meeting participants will include Senate Majority Leader Harry Reid, Senate Minority Leader Mitch McConnell, Senate Assistant Majority Leader Dick Durbin, Senate Minority Whip Jon Kyl, House Speaker Nancy Pelosi, House Majority Leader Steny Hoyer, House Minority Leader John Boehner, House Majority Whip Jim Clyburn and House Minority Whip Eric Cantor. There will be a pooled spray at the top of the bi-partisan meeting.

President-elect Barack Obama will hold a meeting with his top economic advisors on Monday afternoon at his Washington DC transition office.   There will be a pooled spray at the end of the meeting.  Participants in the meeting will include Melody Barnes, Director-designate, Domestic Policy Council; Carol Browner, Assistant-designate to the President for Energy and Climate Change; Former Senator Tom Daschle, Health and Human Services Secretary-designate and Director-designate, White House Office on Health Reform;  Rahm Emanuel, Chief of Staff-designate; Timothy Geithner, Treasury Secretary-designate; Ron Klain, Chief of Staff-designate, Vice President-elect; Peter Orszag, Director-designate, Office of Management and Budget; Christina Romer, Director-designate, Council of Economic Advisors and Lawrence Summers, Director-designate, National Economic Council. 

Sixteen days and counting...