I realize you aren’t very experienced in the real world, but he was being nominated to administer a very large state agency. The fact is there was an investigation of a program he headed of billing irregularities. The withdrawal of his nomination is not that surprising even if the subsequent investigation proves him innocent of wrong doing.
If you’re right, then why did Abercrombie lie about it? Governor Choom said Palafox asked to have his name withdrawn. In fact, he was told.