The Taoiseach has removed the Offaly TD from the position after just over a fortnight into the job.
Barry Cowen has been at the centre of controversy since it emerged he received a drink-driving ban in 2016.
Michéal Martin said revelations in a Garda file, which suggest Mr Cowen may have tried to evade a checkpoint, raised issues which had to be dealt with by other government members, as the former Minister was not willing to make a public statement.
The sacking of Barry Cowen by the Taoiseach comes just hours after Michéal Martin backed him in the Dáil.
In a lengthy tweet, Deputy Cowen issued a statement expressing his disappointment at his dismissal.