WASHINGTON, Sept 28: A Texas grand jury on Wednesday charged Republican Party Congressman Tom DeLay and two political associates with conspiracy in a campaign finance scheme, forcing the House majority leader to temporarily relinquish his post.

Mr DeLay, 58, was accused of a criminal conspiracy along with two associates, John Colyandro, former executive director of a Texas political action committee formed by DeLay, and Jim Ellis, who heads Mr DeLay’s national political committee.

“I have notified the speaker that I will temporarily step aside from my position as majority leader pursuant to rules of the House Republican Conference and the actions of the Travis County district attorney today,” Mr DeLay said in a statement.

Republican Party congressional officials said Speaker Dennis Hastert will recommend that Rep. David Dreier of California step into those duties. Some of the duties may go to the party whip, Rep. Roy Blunt of Missouri. The Republican rank and file may meet as early as Wednesday night to act on Mr Hastert’s recommendation.

Criminal conspiracy is a state felony punishable by six months to two years in a state jail and a fine of up to $10,000. The potential two-year sentence forces DeLay to step down.

White House press secretary Scott McClellan said the president still considers Mr DeLay a friend and effective leader.

The indictment accused Mr DeLay of a conspiracy to “knowingly make a political contribution” in violation of Texas law outlawing corporate contributions. It alleged that Mr DeLay’s Texans for a Republican Majority political action committee accepted $155,000 from companies, including Sears Roebuck, and placed the money in an account.