Governor Bill Richardson of New Mexico, President-elect Barack Obama’s choice for commerce secretary, withdrew from consideration for that job on Sunday, saying a pending investigation into whether his administration gave lucrative contracts to a political donor would have “forced an untenable delay” in his confirmation.

The president-elect and the governor, announced the withdrawal in joint statements. Richardson, one of the nation’s best-known Latino politicians, promised to stay on as governor and said his administration had “acted properly in all matters.”

But he said the inquiry could last weeks or months, drawing out his confirmation hearings and distracting the administration as it grappled with economic crisis.

The announcement was a setback for the president-elect. It raises questions about the thoroughness of Richardson’s vetting, deprives the Obama administration of a prominent Hispanic and leaves a hole in the White House economics team at a critical juncture. The investigation concerns CDR Financial Products Inc, a Beverly Hills, California, company that in 2004 was awarded two contracts worth about $1.4 million to advise the State of New Mexico on a bond issue for building infrastructure.

The company’s president, David Rubin, a Democratic contributor, gave about $100,000 to two political action committees controlled by Richardson, as well as $10,000 to his re-election campaign in 2005.