Healthcare IT firm iSoft, a key supplier to the National Health Service’s £12.4bn National Programme for IT (NPfIT), has sacked its commercial director Steve Graham after an investigation into accounting irregularities at the firm.

Graham was suspended in August after the troubled company launched an initial investigation into possible accounting irregularities. In a statement issued to investors today, iSoft said Graham had been “removed as a director and has ceased to be an employee” of the firm.

The software supplier is under investigation by the Financial Services Authority after irregularities were found in its 2004 and 2005 accounts. The company had twice delayed posting its results and has been forced to change its accounting rules.

The software firm, which is contracted to supply its Lorenzo care records system as a core part of the NHS scheme in three out of the five NPfIT regions, is currently up for sale. The firm admitted it might not survive after revealing pre-tax losses of £14.3m in the six months to 31 October, with revenues down by 11.6%. Delayed full-year results issued in August last year showed a £382m loss.