Obama setback: Richardson withdraws from key post

Barack Obama will move into the White House later this month
Barack Obama will move into the White House later this month
 

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Barack Obama has suffered a blow to his presidency even before it begins, with commerce secretary-designate Bill Richardson withdrawing over potential wrongdoing.

Mr Richardson, the governor of New Mexico, faces investigation over how a company which supported him with donations won a state contract.

He denies any wrongdoing but has withdrawn "with great sorrow" because of fears the Senate – which must confirm the president-elect's nomination – would spend a lengthy period of time analysing the case.

"Let me say unequivocally that I and my administration have acted properly in all matters and that the investigation will bear out that fact," he said in a statement.

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

The news will be a blow for the United States' Hispanic community, which counts Mr Richardson as one of its own.

He had been expected to use his assertive negotiating approach to good effect on the world stage and would have played a vital role as the US struggles to recover from the current economic downturn.

Mr Obama accepted the withdrawal with "deep regret".

He said in a statement: "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."

Observers will notice how Mr Obama, who campaigned so strongly on an 'anti-Washington' platform throughout his 2008 campaign to be the next president, suffered his first major loss on the day he arrived in the US capital.

The president-elect is moving into the Hay-Adams Hotel, which overlooks the White House, with his wife Michelle Obama and his two daughters today.

He will stay there until he officially takes over from George Bush in the White House on January 20th.

His two children, Sasha, seven, and Malia, ten, arrived yesterday in preparation for their first day at the private Sidwell Friends School on Monday.

It has a track record of catering for first children, counting Chelsea Clinton among its former pupils.

Mr Obama, fresh from a 12-day Christmas break in Hawaii, returns to continue preparations for his administration.

With his Cabinet appointments sewn up – or so he thought – Mr Obama is now turning his attention to his American Recovery and Reinvestment Plan, his programme of public works he hopes will stimulate the failing US economy.

In his weekly address, delivered yesterday, he said: "I am optimistic that if we come together to seek solutions that advance not the interests of any party, or the agenda of any one group, but the aspirations of all Americans, then we will meet the challenges of our time just as previous generations have met the challenges of theirs."

Tomorrow he is expected to meet with senior representatives of both the Democrats and Republicans in a bid to reach agreement on the deal.


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