Sinn Féin has called for the sacking of Orangeman David Burrows from the Parades Commission.
The party's Upper Bann Assembly member, John O'Dowd, made the demand after a meeting with the commission in Belfast.
A second member of the Orange Order, Don McKay, resigned on Tuesday after a controversy over his application for membership of the body.
Mr McKay had cited DUP and SDLP Assembly members as referees without seeking their consent. It emerged yesterday that Mr Burrows similarly quoted the name of Methodist minister the Rev Jim Rea as a referee.
Mr Rea said yesterday he was "really embarrassed and hurt" by the controversy.
"If the Northern Ireland Office had done their homework in this, this situation could have been averted.
"It says something about a flawed process that has left everybody highly exposed."
Mr O'Dowd said he had made it clear to the commission that "real damage" had been done to its reputation "by the manner in which the British Secretary of State, Peter Hain, has conducted the appointments process.
"The Parades Commission's job is to issue determinations on parades, the majority of which are organised by the loyal orders.
"Given this fact there should be no place on the Parades Commission for members of the Orange Order," he said.
"McKay has resigned and Burrows's position is untenable also," he said. "I made it clear to the commission today that unlike the SDLP we do not accept Orange Order members issuing determinations on contentious parades organised by their organisation.
"This is a ludicrous situation and must be rectified if public confidence is to be restored in the commission's ability to do its job in an impartial and fair manner."
The SDLP's Alex Attwood said yesterday that balance should be restored on the commission by the replacement of Mr McKay by a member of the nationalist community.