
The Arts Council of Northern Ireland has asked Féile an Phobail to remove its logo from the festival’s sports events.
It is one of the principal funders of the west Belfast festival.
The move comes as the Democratic Unionist Party (DUP) questioned the use of Belfast City Council funding for the festival because of a sports event named after a former IRA chief of staff.
Joe Cahill, who died in 2004, was a key figure in founding the Provisional IRA and was Belfast commander before becoming chief of staff.
DUP MLA David Brooks said it was “not appropriate to have an event named after an IRA terrorist”.

In August, two County Antrim GAA (Gaelic Athletic Association) clubs will host the Joe Cahill Gaelic Competition, an event for children aged under 12.
In a statement to BBC Radio Ulster’s Talkback programme the Arts Council said it does not provide funding for sports events and has alerted the festival to the “incorrect use” of the logo.
The Arts Council said the festival said the logo was “used in error and will be removed”.
Féile an Phobail is an annual event that runs across two weeks in west Belfast.
Its principal funders are Belfast City Council, The Arts Council of Northern Ireland and Tourism Northern Ireland.
Brooks told Talkback that there should be “proper scrutiny in how council funding is used in relation to Féile”.
“When council see these events taking place and this kind of glorification of terrorism taking place they should naturally be asking the question whether they want to be associated with it and whether it’s an appropriate use of public funds,” he added.
Belfast City Council said that Féile an Phobail had received multi-year funding which equated to £244,000 a year for four years.
“The event organiser would be responsible for funding distribution towards the festival programme,” the statement added.
Last week a cross community sports camp in Comber, County Down, was cancelled as residents and an Orange Lodge raised concerns over the “perceived move of the GAA into the local community” and their unease at how it “celebrated or commemorated individuals associated with paramilitary activity”.