Chinese Taipei Skating Union (CTSU) secretary general Eddy Wu has been sacked by the Sports Administration after an investigation found he did not consult the organisation's Board when deciding to give up the hosting rights for an international figure skating event.
Taiwan was due to stage the Asian Open Figure Skating Classic between October 30 and November 3 but the competition was switched to Dongguan in China.
It came after the International Skating Union claimed several Asian countries, including the CTSU, had indicated that it would be "preferable" to host the Challenger level event in another nation.
Taiwan's Foreign Ministry reacted angrily to the decision and launched an investigation, which found Wu had failed to follow the correct procedure.
According to the Focus Taiwan news channel, the taskforce found the ISU had asked the CTSU to agree to moving the event to Dongguan.
The probe uncovered how Wu had failed to bring the issue in front of the CTSU Board in breach of the governing body's regulations.
Lin Che-hung, deputy head of the Sports Administration, claimed Wu made the decision on his own because he was fearful of a boycott of the event.
The Sports Administration has also warned the CTSU and suspended funding to the national body for a year.
Lin claimed inconsistencies in statements emanating from Wu and the CTSU contributed to the decisions taken against the organisation.
The statements "mislead people, triggered a social disturbance, and hurt (Taiwan's) international reputation", he said.
In a statement, the ISU said it had made the decision to move the event "with the specific agreement of the Chinese Taipei Skating Union".
Wu said at the time there was "invisible pressure in the international arena", according to Focus Taiwan.
"To keep our cordial relations with the ISU and to make sure we would be able to host other events in the future, we had no choice but to say yes," he said.
Taiwan initially blamed Chinese interference for the controversy in the latest example of the dispute between the two countries spilling over into the sporting arena.
China insists that Taiwan is a part of its territory and has increased diplomatic pressure since President Tsai Ing-wen, a known skeptic of Beijing, was elected in 2016.
Taiwan also claims that this year's East Asian Youth Games in Taichung were removed from them due to Chinese interference.