Funding for the Centre for Public Inquiry (CPI) has been withdrawn by its financial supporter, Atlantic Philanthropies.
A brief statement issued this evening said: "After several weeks of discussion with the Centre for Public Inquiry (CPI), the board of Atlantic Philanthropies decided to cease funding CPI."
The decision was reached at its scheduled meeting yesterday, the statement said. Atlantic Philanthropies is a trust founded by American billionaire Chuck Feeney.
In an interview on RTE radio today, the CPI executive director, Frank Connolly, said reports that the centre would lose its funding were "rubbish". He was answering questions about a claim by the Minister of Justice Michael McDowell that he had been involved in an IRA plot to teach Farc rebels in Colombia in the use of explosives.
Mr Connolly issued a statement this morning saying allegations that he had travelled to Colombia using forged documents were false and he accused Mr McDowell of trying to destroy his reputation.
This evening he told ireland.comthat he would not be making comment until he had spoken to the CPI board. He did not anticipate any public comment today.
The Irish Independentreported last month that Mr McDowell had met Mr Feeney and expressed concern about the role of Mr Connolly at the CPI. In the written reply in the Dáil last night, Mr McDowell said: "Mr Connolly has many major questions to deal with in respect of his travel to Colombia under an assumed identity with a known subversive."
It is understood the decision by Atlantic Philanthropies to cease funding was taken prior to the Minister's reply in the Dáil last night.
The Atlantic Philanthropies statement was issued through a Dublin public relations company. A spokesman said he could not make any comment on the circumstances surrounding the board's decision.
The CPI is chaired by former High Court judge Justice Fergus Flood. Its board is made up of Enda McDonagh of University College Cork; broadcaster and writer, Damien Kiberd; human rights lawyer, Greg O'Neill; and Thora Mackey, deputy director of Unicef Ireland.
It mission was to "independently promote the highest standards of integrity, ethics and accountability across Irish public and business life and to investigate and publicise breaches of those standards where they arise".
It commenced work earlier this year and published two reports. One was on the controversial building of a hotel opposite Trim Castle in Co Meath. The other questioned the safety of the Corrib gas pipeline being built by a Shell-led consortium. Five locals were jailed earlier this year for protesting against a pipeline which they believe poses a serious safety risk.
Mr Connolly said today that the attack on him through the pages of Independent News and Media titles and Mr McDowell were co-ordinated by "those seeking to protect vested interests".