New Mexico Gov. Bill Richardson (D) has withdrawn from his nomination as Dept. of Commerce Secretary in President-elect Barack Obama’s cabinet. In a Jan. 5 news conference, Richardson stated that an ongoing federal grand jury investigation into a state contract related to Governor Richardson’s Investment Partnership (GRIP) won by Beverly Hills, Calif.-based CDR Financial Products “would have forced an untenable delay in the confirmation process.”
The investigation centers around a $1.48-million consulting contract CDR won in 2004 with the New Mexico Finance Authority, a state instrumentality that finances infrastructure projects by providing low-cost funds and technical assistance. CDR was part of a team of financial services firms that advised NMFA on interest rate swaps and refinancing of funds related to the $1.6 billion GRIP bond program, which was approved by the New Mexico legislature in 2003 to fund numerous highway and transportation projects. The $400 million Rail Runner commuter train, which began passenger service last month on its second phase connecting Albuquerque and Santa Fe, was one such project funded through GRIP.