Chua, who is assistant finance minister, had previously repeatedly denied any links with the opposition but was yesterday seen in the company of Tan Sri Musa Aman.
He was among the 10-12 government assemblymen who had switched their allegiance to Musa who was seeking to topple the state administration of Datuk Seri Mohd Shafie Apdal.
The party’s disciplinary committee chairman, Ahmad Kasim, today said the decision to sack Chua was taken after it confirmed his presence in the opposition camp.
“Taking into account PKR’s stand that the betrayal of the people’s mandate should not be allowed to take place, the disciplinary board is sacking Kenny Chua Teck Ho with immediate effect,” he said in a statement.
Chua is also the assemblyman for Inanam.