Richardson Withdraws Name as Commerce Secretary-Designee

Obama added that he would "move quickly to fill the void left by Governor Richardson's decision."

Richardson said in a statement that: "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."

In the statement, first obtained by MSNBC and later released by the presidential transition office, he added: "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."

The decision is the first serious political hit for one of Obama's Cabinet nominees and comes just as confirmation hearings begin next week.

Richardson said he would remain governor of New Mexico "for now."

The probe in New Mexico involves questions about a California firm, CDR Financial Products, and its president, David Rubin. The grand jury in Albuquerque is looking into whether the firm was given a contract with the New Mexico Finance Authority because of pressure from Richardson.

CDR made $1.48 million advising the authority on interest-rate swaps and refinancing of funds related to $1.6 billion in transportation bonds issued by the agency, state officials confirmed.

The firm and Rubin together gave $100,000 to two Richardson organizations shortly before winning those contracts.

The probe into the donations was said to be "highly active" around the middle of last month, according to two sources familiar with the investigation, which is being conducted by the FBI and federal prosecutors.

In mid-December, Richardson spokesman Gilbert Gallegos, said the governor was "aware of questions surrounding some financial transactions at the New Mexico Finance Authority" and expected state officials to cooperate fully. Gallegos declined further comment.

CDR's attorney, Richard Beckler, declined to answer questions several weeks ago.

"CDR has always tried to abide by these byzantine campaign finance regulations and is cooperating fully with this investigation," Beckler said in a telephone interview with a Post reporter on December 15.