So what happened was that
1) a founder of Kubuntu truthfully stated that money from Ubuntu-oriented donations didn't go to Kubuntu
2) It was discovered that a developer of Kubuntu was listed as the recipient of some of this funding, but didn't actually receive any of this money due to an alleged clerical error
3) The clerical error has not been corrected, and a founder of Kubuntu has been asked to step down as a representative of the Kubuntu community/council by the CEO of Ubuntu's parent company
I don't understand how anything that anyone did on the Kubuntu side warranted this reaction. Not only that, it's not clear to me what level of authority Canonical's executives have over the Kubuntu community in the first place.
Is this the full story?
Why do CC/ShuttleworthCo care this much?