Grand jury probes contract given to Richardson donor

ALBUQUERQUE, N.M. — A federal grand jury is investigating how a California firm that contributed to the political activities of New Mexico Gov. Bill Richardson, the nominee to head the Commerce Department, won a lucrative government contract.

A person familiar with the proceedings told The Associated Press on Tuesday that the panel is looking into possible "pay-to-play" dealings between CDR Financial Products and someone in a position to push the contract through with the state of New Mexico. The person asked not to be named.

The proceedings follow an FBI probe in which investigators sought documents from the New Mexico Finance Authority. Investigators also interviewed former and current authority officials about New Mexico's 2004 contract with CDR for the $1.6 billion transportation program.

Richardson ignored two shouted questions about the company at his afternoon news conference in Santa Fe and left the room.

Richardson spokesman Gilbert Gallegos did not confirm the grand jury probe but said the Governor's Office is "aware of questions surrounding some financial transactions at the New Mexico Finance Authority."

CDR and its chief executive, David Rubin, have contributed at least $110,000 to three political committees formed by Richardson, according to a review of campaign-finance records.

Becerra turns down trade-rep position

Rep. Xavier Becerra, D-Calif., said Tuesday he will stay in the House and pass on becoming U.S. trade representative in Barack Obama's administration.

Becerra emerged as the leading candidate for the post and interviewed with Obama this month. In a telephone interview Tuesday, he said he decided he wanted to stay in the House to work on various issues, including an immigration overhaul and universal health care.

He said he had informed the Obama team of his decision.

Becerra, who was just elected to his ninth term representing Los Angeles, is moving up the ladder on the powerful House Ways and Means Committee that writes taxes and oversees health care and trade, and was just chosen vice chairman of the House Democratic Caucus.

With Becerra removing himself from contention, other names circulating for the trade job include former Dallas Mayor Ron Kirk.

FDA chief joins list of departing officials

The Food and Drug Administration (FDA) commissioner, Dr. Andrew von Eschenbach, said Tuesday he would resign on Inauguration Day, Jan. 20, part of a parade of expected departures at the nation's crucial public-health agencies.

Leaders of these agencies have sometimes straddled administrations, but the Obama administration is expected to make a clean sweep.

Dr. Elias Zerhouni has already left his post as director of the National Institutes of Health. Dr. Julie Gerberding, director of the Centers for Disease Control and Prevention, wrote in a November e-mail to her staff that she expects to leave "after the administration changes." And Dr. John Niederhuber, director of the National Cancer Institute, is expected to surrender his leadership job, although he may remain at the institute.

Tommy Vietor, an Obama transition spokesman, declined to comment.

President Clinton's secretary volunteers

It's official. The old Clinton gang really is back together again. Answering the phones these days for the co-chairman of President-elect Obama's transition, John Podesta, is none other than Betty Currie.

Currie, who is emerging from retirement in Maryland to volunteer at Obama headquarters, was the personal secretary to President Clinton who became caught up in an independent-counsel investigation into his trysts with the White House intern Monica Lewinsky.

Since leaving the White House, Currie, 69, has kept a low profile in Hollywood, Md., where she lives with her husband, Bob, and Socks, the presidential cat, which she took with her after Clinton left office.

Currie declined to discuss her work for Obama or her recent life, citing a transition-office policy against volunteers giving interviews.

Compelled to testify to a grand jury five times about Clinton's relationship with Lewinsky, Currie is widely admired in Clinton circles for her loyalty and effectiveness.

Podesta, who was Clinton's last White House chief of staff, said it was natural for him to call Currie back to service. "Of course I asked her, because in the 30 years we have worked together, I have never known anyone with more grace, dedication and public spirit than Betty," he said. "And she has one mean Rolodex."

Currie is the latest familiar face from the Clinton era to assist Obama's team. In addition to Podesta, Obama's new White House chief of staff, his White House counsel and his economics, energy and environmental advisers all served in the Clinton administration. So did most of the Cabinet officers he has chosen and many of the aides conducting agency reviews. And the newly designated secretary of state is Hillary Rodham Clinton.

Seattle Times news services