Obama dumps scandal-tainted key nominee

PRESIDENT-ELECT Barack Obama has moved to cut short ethical controversies surrounding his incoming administration, by accepting the withdrawal of his nominee for commerce secretary, Bill Richardson, who is embroiled in a financial scandal in his home state of New Mexico.

The two issued a statement announcing that Mr Richardson, once a presidential candidate and the first prominent Latino to be appointed to the cabinet, would withdraw and return to his duties as Governor of New Mexico, after it became clear a grand jury inquiry into the dealings of a donor company with the state would take some time.

Mr Obama said he had accepted Mr Richardson's decision to withdraw "with deep regret".

Source: The Age