Scandal has rocked the Vatican for the second time in a week.
On Thursday (September 25), officials confirmed Pope Francis had sacked Bishop Livieres, head of the Paraguayan diocese of Ciudad del Este.
Livieres is suspected of protecting a priest believed to have sexually abused young people.
His dismissal followed the arrest two days earlier of former archbishop Josef Wesolowski, who is accused of paying for sex with children during his time as papal ambassador in the Dominican Republic.
Pope Francis, has vowed to take a zero-tolerance policy on clerics who abuse minors. The pontiff approved Wesolowski’s arrest and earlier this year compared child abuse to a “satanic mass”.
Wesolowski has appealed against the accusation, while Livieres has defended both himself and the priest he is suspected of protecting.
Vatican sources say the Paraguayan’s dismissal was the result of an investigation into the notoriously divisive bishop, the diocese and its seminaries.