GUY RAZ, host:
New Mexico Governor Bill Richardson is pulling out of President-elect Obama's Cabinet lineup. Richardson, a onetime rival for the Democratic presidential nomination, was Obama's choice to be secretary of commerce. But today he withdrew his name from nomination. Why? For that, we turn to NPR White House correspondent Don Gonyea. Don, for most of us, this is a surprise. But in a way it isn't a surprise, right?
DON GONYEA: Yeah, always unexpected when news like this drops on a Sunday midday, like it did. But the basic story has been out there for a couple of months. There has been a grand jury investigation in New Mexico where Richardson is governor. It's been under way for several months. It was certainly under way last month when Richardson was nominated for the Cabinet post by the president-elect.
Now, specifically, it deals with a company called CDR Financial Products. That company had a one-and-a-half-million-dollar contract from the state of New Mexico to do transportation work. After they got that contract, there were big campaign contributions. So we don't know all of the details. The sense for the Obama team had to have been when they announced Richardson last month that it wasn't that big of a deal, that it would blow over and be wrapped up somewhat quickly. Clearly, that's not the case.
RAZ: And Don, how is this being framed by Richardson and then by the Obama transition team?
GONYEA: We've got statements from each, first from Governor Richardson. He said - this is a quote - "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 he goes on to say that since the investigation was going to be ongoing, it would possibly delay his own confirmation hearings. You know, the commerce secretary is an important part of the economic team in any administration, certainly with the country facing what it's facing now in terms of the economy. So he is stepping down so that President-elect Obama can get somebody else in that spot.
As for Mr. Obama, he said he accepts Richardson's withdrawal with regret. He says it's a sign that Richardson is putting the nation first. We don't know if Richardson did this on his own or if he was nudged or even pushed.
RAZ: Now, Don, President-elect Obama's managed to get through much of this transition without any serious stumbles until now, I guess, right?
GONYEA: Yeah, and it's, you know, it's probably way early to say this is even a major stumble. It is an important Cabinet post that he's got to find a new name for, a new nominee. And it is a distraction. But it doesn't feel earthshaking by any means. Obviously, you know, the big one that's out there is the Blagojevich scandal in Illinois, and this doesn't even begin to measure up to that one in terms of what's out there. But in both cases, I should say that Mr. Obama seems to be way above the fray.
RAZ: And Don, in the remaining few seconds we have, there's another piece of political news out there today, reports that Tim Kaine, the governor of Virginia, will be the next chairman of the Democratic Party. What do you know about this?
GONYEA: Replacing Howard Dean. It hasn't been announced officially. Sources have told the Associated Press that Kaine is about to take over the DNC. He can't run for re-election in Virginia. That's a, you know, one-term state, and then you're off to do whatever else. So he will head the DNC while completing his last two years there. But he's one of the rising stars in the party and was considered a frontrunner to be Obama's running mate before Biden was selected.
RAZ: That's NPR White House correspondent, Don Gonyea. Don, thanks so much.
GONYEA: All right, thank you.