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. ®

• NHS IT boss tells iSoft and CSC to sort it out (7 June 2007)
• iSoft sets lawyers on CSC (4 June 2007)
• Why does CSC want to stop the rescue of iSoft? (1 June 2007)
• iSoft rescue package in jeopardy (29 May 2007)
• Aussie bid for iSoft approved (16 May 2007)
• Aussies make offer for iSoft (8 May 2007)
• iSoft CTO quits (4 May 2007)
• Sickly NHS provider still seeking saviour (30 April 2007)
• Updated iSoft in critical condition as NHS trusts seek alternatives (5 March 2007)
• iSoft in talks with Aussie firm (16 February 2007)
• iSoft hit with another investigation (25 October 2006)
• iSoft predicts fall in revenue and offers itself for sale (17 October 2006)
• iSoft costing Staffs hospital dear (16 October 2006)
• iSoft's £82m City sweetener (13 September 2006)