iSoft has sacked Steve Graham, the company's co-founder and commercial director.
iSoft issued a statement to the London Stock Exchange which said: "The company is today announcing that Steve Graham has been removed as a director and has ceased to be an employee of iSoft."
The company is currently being investigated by the Financial Services Authority (FSA).
Graham has been suspended since August 2006 following the initial investigation into the company's 2004 and 2005 accounts.
iSoft is a central player in the government's much-vaunted National Programme for IT. The British government has bailed the company out twice - it has received £82m in early payments to keep the bankers happy.
Problems began last year when it revealed an unexpected hole in its accounts. The company is considering its options, including a possible sale.
Shares in iSoft were up slightly this morning. ®