Rob Callister says there were 'behavioural issues' with Tynwald members at the health department.
Chief Minister Alfred Cannan said the "serious matters" needed to be investigated.
Mr Cannan told politicians the dismissal was in the "greater interests" of healthcare on the island, but refused to elaborate on the specific reason for Mr Callister's removal. But the trio said they "utterly refute" the claims made in his "outburst" in Tynwald, and would cooperate with any subsequent investigation.
Mr Cannan was under fire for a lack of transparency from some in the court, including Tim Glover MHK who repeatedly asked what had changed "in the 50-odd days" between Mr Callister's appointment and dismissal.
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