The Honduran Foreign Ministry announced Saturday Ambassador Carlos Rodriguez had been let go, CNN reported.
Rodriguez was fired to "safeguard national interests and good relations" with Colombia, the ministry said.
El Heraldo newspaper in Honduras reported that Rodriguez allowed an employee to throw a party at the embassy on Dec. 20 that was allegedly attended by prostitutes. Rodriguez is not believed to have attended the party.
Party-goers trashed the embassy and allegedly stole computers and cell phones, El Heraldo said.
The foreign ministry has set up a special group to investigate the incident.
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