Central Remedial Clinic Chief Executive Brian Conlon has resigned following the controversy over top-up payments at the organisation.
Mr Conlon informed some staff over the weekend of his decision and told other staff today.
He took up the post in July of this year, having previously been CEO of the Mater Hospital.
Senior CRC staff are due to appear before the Public Accounts Committee later this week to answer questions on the controversy.
In November, the CRC confirmed that some of the money donated by the public was being used to top up the salaries of some of its staff.
The funds were raised by a separate company called Friends and Supporters of the Central Remedial Clinic.
The CRC admitted that the additional salary amounts were over the Department of Health's consolidated pay scales.
In a statement this afternoon, the Board of the CRC confirmed it had accepted Mr Conlon's resignation with immediate effect.
Chairman Jim Nugent has been appointed interim-CEO.
Joan Hurley will take over the day-to-day management of the clinic and will coordinate the senior management team as Operations Director.
The board thanked Mr Conlon for his support and commitment to the CRC.
Meanwhile, Independent TD Shane Ross has said there may be more resignations to come after Mr Conlon's decision to step down.
Speaking on RTÉ's Today with Sean O'Rourke, Mr Ross said the appointment of any successor should not be supervised by the current board. Mr Ross said it should be advertised and selected externally.
He said he hoped that by the time a successor is appointed the members of the board would have stepped down.
Mr Ross said anybody who was involved in the appointment of Mr Conlon, or in authorising top-ups for the previous chief executive, Paul Kiely, should not be involved in any way in the new appointment.
He said the Health Service Executive may have to take a hands-on role in the appointment of a successor to Mr Conlon.
Sinn Féin deputy leader Mary Lou McDonald called on Minister for Health James Reilly to intervene in the controversy.
Speaking on RTÉ's News at One, Ms McDonald, who is a member of the PAC, said she hopes Mr Conlon will attend the PAC meeting on Wednesday, despite his resignation.
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