American International Group Inc., New York, has dismissed 2 executives, the company says.[@@]

The executives were dismissed for failing to cooperate with an accounting probe, according to AIG spokesman Chris Winans.

AIG previously had announced that the executives, Howard Smith, the company’s former chief financial officer, and Christian Milton, a former vice president for reinsurance, were “on leave.”

AIG has been under scrutiny from both the U.S. Securities and Exchange Commission and New York Attorney General Eliot Spitzer’s office. Investigators have been looking into allegations that AIG may have used reinsurance transactions or other transactions to improve the appeal of its financial statements.

Winans says Smith and Milton were dismissed in connection with a company policy requiring employees to cooperate with government authorities on matters pertaining to the company.

The continuing government scrutiny has also led to the replacement of AIG’s longtime chief executive officer, Maurice Greenberg, who remains with the company in the post of non-executive chairman.

Greenberg was replaced by Martin Sullivan, who had been serving as co-chief operating officer. Smith was replaced by Steven Bensinger, who has been AIG’s treasurer and comptroller.

Because of the ongoing probes into its accounting, AIG has delayed the filing of its annual 10-K financial report with the SEC, and the price of its stock has fallen amid speculation that a major readjustment could be announced.