The British government has been urged to withhold grants for up to 30 Sinn Fein activists to improve personal security around their homes.
Mr Norman Boyd, an anti-agreement unionist member of the Assembly, condemned plans to give taxpayers' money to republicans to secure their homes under the Northern Ireland Office's Key Persons Protection Scheme.
Mr Boyd made his comments after security sources told a news agency that as many as 30 republicans could qualify for the scheme. It is understood senior Sinn Fein members such as Mr Gerry Kelly will qualify.
A Sinn Fein spokesman claimed yesterday that party members would be included in the scheme following negotiations with the Northern Ireland Office but he added they would not be subjected to a security risk assessment by the RUC, unlike other applicants.
The assessments will be carried out by the Northern Ireland Housing Executive, he added.
The changes to the scheme have been condemned by former Northern Ireland political development minister and Conservative MP, Mr Michael Ancram, who warned that any special treatment for Sinn Fein would be deemed unfair.
The Police Authority in Northern Ireland has also written to Northern Secretary, Dr Mo Mowlam, to discuss the reports.
However, Mr Boyd accused the British government of "pandering to nationalism" by allowing Sinn Fein members to qualify for the scheme and demanded the removal of Dr Mowlam and her security minister, Mr Adam Ingram, from office.
"It is appalling that the Secretary of State has excluded Sinn Fein from the assessment process, yet she insists that unionist elected representatives must be fully assessed for personal security requirements.
"This blatant practice of discrimination is clear evidence that the Secretary of State is pandering to nationalists," he said.
A Northern Ireland Office spokeswoman would not comment on the report, saying it was not policy to discuss individual security matters.