LAS CRUCES, N.M. -- While New Mexico Gov. Bill Richardson tries to focus on balancing the state budget, the FBI and a federal grand jury are focusing on an investigation of him and other state officials.

The governor's office is under investigation in a possible "pay-for-play" scandal involving a California based financial company --an investigation that led him to withdraw his nomination for U.S. commerce secretary.

On a visit to Las Cruces Wednesday, the governor talked briefly about the allegations.

The company in question, CRD Financial Services and Richardson said they've done nothing wrong and the investigation will reveal that.

Investigators are looking at Richardson's Political Action Committees.

“The only thing I want to say on that is that there is an inquiry going on. I'm not going to comment on that inquiry,” Richardson said.

CRD Financial Services announced its position on its Web site stating it has never practiced Pay-for-Play.

“Again I'll say once and for all that my administration and all officials in the administration did absolutely nothing wrong. The contract was given on a competitive basis.

NMSU associate professor of government Jose Z. Garcia said the investigation still strips the governor of power.

“This humiliation of having to pull out of a cabinet position has left him pretty much unable to control events and that used to be his strong suit,” Garcia said.

He adds that lawmakers could stray from Richardson’s agenda this year because of that, and perhaps soon focus on PAC reform.

“The fact is we have a campaign finance system that is corrupt. It engenders corruption it fosters the feeling that you must contribute to political action committees in order to have any access to power at all,” Garcia said.

Richardson is sure the investigation will clear his name.

“We're confident that at the end of the probe this will come out. The reality is no one has been charged. It's an investigation. We have to respect that investigation,” said Richardson.

As far as the projects allegedly linked to the governor's PAC contributions, those are already appropriated, and Garcia doesn't think there will be a damaging effect on those with what's already happened.