Carroll was considered one of Liberal Leader Stephane Dion's closest associates, but last month, he purportedly made controversial comments about hiring more Quebecers.
During a closed-door meeting, Carroll allegedly said that if he hired more Quebecers, he would also have to hire more Chinese staffers.
Deputy leader Michael Ignatieff called for Carroll's dismissal, while Dion stood by his associate, saying his remarks were misinterpreted.
The Canadian Press then reported Dion would "reassign" Carroll, apparently in an attempt by the Liberal leader to quell dissent within the party.
But Carroll then sent a letter to party executive members, in which he threatened to sue for defamation and demanded up to 18 months severance pay.
The same press release issued Wednesday that included comments from Poulin said the decision was a "confidential personnel matter," and that the party "would make no further comments on the issue."
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20071010/liberal_carroll_071010/20071010?hub=TopStories
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