APPOINTMENTS

Tuesday, February 3, 2009 11:24 AM

Killefer Cites Tax Problems In Ending CPO Bid

By DAVID HERBERT

Nancy Killefer has ended her candidacy to be the nation's first chief performance officer, a nomination President Obama once touted as "among the most important" he would make.

In a letter to Obama dated today, Killefer cited tax problems with the District of Columbia. The Associated Press revealed shortly after her nomination that the District hit Killefer with a $946 tax lien on her home in 2005 after she failed to pay unemployment compensation for household help.

Killefer, an executive with consulting titan McKinsey & Co., is expected to give a news conference this afternoon. In addition to the newly created CPO position, she would have been deputy director for management at the Office of Management and Budget.

Killefer is Obama's second high-profile nominee to withdraw (along with would-be Commerce Secretary Bill Richardson) and the third nominee to have received scrutiny over unpaid taxes, after Treasury Secretary Timothy Geithner and Health and Human Services nominee Tom Daschle.

Read text of Killefer's letter to Obama after the jump.

February 3, 2009

Dear Mr. President,

I recognize that your agenda and the duties facing your Chief Performance Officer are urgent. I have also come to realize in the current environment that my personal tax issue of D.C. Unemployment tax could be used to create exactly the kind of distraction and delay those duties must avoid. Because of this I must reluctantly ask you to withdraw my name from consideration.

I am deeply honored to have been selected by you and you have my deep appreciation for your confidence in me. You have my heartfelt support and best wishes for success in all your endeavors.

Respectfully yours,
Nancy Killefer