THE shocking news in regional journalism yesterday came in the evening with the dramatic disclosure of a suspension of the wire, radio and television services provided by the Barbados-headquartered Caribbean Media Corporation (CMC) as a consequence of deteriorating cash flow problems.

It was just 17 months ago that a merger arrangement between the Caribbean News Agency (CANA) and the Caribbean Broadcasting Union (CBU) was operationalised with indications of brighter prospects with a US$5M grant from the European Union to enable better service to customers and the region's people.

But yesterday, following a tele-conferencing exercise involving the Chairman of the merged entity CMC, (Lester Spaulding), President of the CBU (Melba Smith), Chairman of CANA, Sir Fred Gollop and Chief Operating Officer (COO), Gary Allen, it was announced to a surprised and demoralised staff that the CMC's operations would be closed for an indefinite period from 4:30 p.m. yesterday.

Contacted later, Allen said that beyond confirming the decision to close operations from yesterday until a further announcement, he would prefer to await an expected press statement from the CMC Chairman later in the evening.

Staffers, some with long years of service with CANA that has been in existence for 25 years, as well as those with CANARadio, which has been operating for some 16 years, were too stunned to continue their day's work.

As a result, when I was telephoned the surprising news as the CMC's Regional Affairs Correspondent, it was to be informed that there would be neither the daily 'Caribbean Today', 15-minute newsreel, CANA's flagship programme, the nightly CBU `Caribbean News Line', the 'Caribbean in Five' morning programme, nor the agency's daily sports programme.

Staffers were more preoccupied in trying to clarify National Insurance Scheme and pensionable benefits and the specific information they expect to have in individual letters from the administration.

And so last night the once much heralded success story of CANA as a Third World regional news service, and which has been proudly advertising itself with an appropriate logo on the new CMC's web page that "only the sun covers the Caribbean better", was out of operation for the first time since its establishment amid much fanfare and optimism.

For the past 25 years the wire service CANA -- which has evolved as a household word in the region, like the Caribbean Community (CARICOM), LIAT and BWIA -- has been marketing itself as the number one daily provider of satellite-delivered Caribbean regional news and information to major newspapers, radio and television stations in the Caribbean Community.

Statement from CMC management
THE CMC management last night issued the following statement:

"The Board of Directors of the Caribbean Media Corporation wishes to advise that our operations are being temporarily closed for re-structuring as of Friday January 4, 2002 at 4.30 p.m.

The urgent financial re-structuring is occasioned by a significant decline in business activities, particularly in the last few months.

Fifty of the fifty-four members of staff employed to the organisation are being laid off. A small team of four is being retained to work on the speedy re-structuring of the organisation.

The team will also work to ensure that committed media projects will not be jeopardised in the period of closure.

The CMC has for the past 17 months been the region's first and only multi-media (print, radio, television and Internet) entity, having been formed to undertake the business operations of CANA and CBU.

Its temporary closure means the suspension of services of CANA Radio, CANA Wire and CBU television services.

The Board wishes to advise that the temporary closure decision was not taken lightly and has come after months of efforts to re-finance, re-structure and re-capitalise the organisation while continuing regular operations.

It says help from banks, shareholders and some governments in the region was sought before coming to this decision.

The Board says it regrets that the region's only source of indigenous news and programming has had to be suspended, and it looks forward to when it will return to stronger and expanded operations."