Susan Gordon, Business Reporter

Jean McPherson, marketing manager of Flow Communications, says the company had done its due diligence on Matrix prior to acquiring it. - File

After the Broadcasting Commission cast doubt on the legality of Flow's most recent acquisition of a Hanover- based cable company, Marketing Manager Jean McPherson said the company would cooperate to resolve the issue speedily.

"We have set out to comply with the legal and regulatory framework," said McPherson.

"We are working to resolve it and things should be sorted out fairly quickly."

Acquired matrix communication

The regulatory body said Monday, following Flow's announcement three days earlier, that it had acquired Matrix Entertainment and Communication Company Limited, that the St. James and Hanover licensee had not applied for approval for a change of ownership.

The commission referred to Regulation 28 of the Televi-sion and Sound Broadcasting Regulation which states that where there is to be a transfer of ownership, the licensee shall before the transfer, first obtain approval from the commission.

McPherson did not confirm or deny the commission's statement, but told Sunday Business that Flow had in fact done its due diligence.

The commission said it would take stringent regulatory actions against Matrix and Flow if the acquisition were found to be unlawful, but would not comment on the likely penalty.

"The commission does not make pre-emptive decisions," said information officer Jacqueline Jackson in written responses to Sunday Business queries.

"It will consider the matter and make its decisions and findings public."

Jackson, however, did not commit to a timeline, saying it depends on the facts of the case, as well as the time the commissioners sit after the review is done.

Flow has not disclosed the price it paid for Matrix.

McPherson said the company was bound by a confidentiality agreement.

Matrix is a cable television subscriber based in Hanover and is owned by a private group of shareholders. It has about 2,000 customers.

Flow had planned to roll out its cable service to the subscribers of Matrix on October 1, but that timetable now rests on how quickly the regulatory issues are resolved.

susan.gordon@gleanerjm.com