01:00 AM EDT on Saturday, October 9, 2004

BY DAVID McPHERSON and ANDY SMITH
Journal Staff Writers

Jane Christo, who built WBUR in Boston into one of public radio's leading voices, announced her resignation yesterday after a firestorm sparked by her decision to sell its Rhode Island station, WRNI in Providence.

Under investigation by Boston University, which owns both stations, Christo said "the present controversy regarding my leadership of WBUR has become too large a distraction."

The announcement of Christo's resignation as general manager came exactly three weeks after she traveled to Providence and told stunned Rhode Island public radio donors that WBUR would sell WRNI-AM and sister station WXNI-AM, in Westerly.

Christo refused further comment, but said in a statement she will resign effective Friday.

"I have decided to step aside so that the focus of the staff and management at WBUR can be returned to providing our listeners with the very best in public radio news programming," the statement said.

The resignation follows by one week BU's disclosure that it is investigating anonymous allegations of mismanagement lodged against her. A university statement released after Christo's announcement indicates the investigation is continuing.

THE ALLEGATIONS against Christo are contained in a detailed letter sent to BU administrators shortly after the WRNI sale was announced.

A source close to WBUR previously told The Providence Journal the allegations concern hiring practices, a no-bid contract, use of automobiles, WBUR's Citizens of the World travel program, and general station spending.

"I am confident that when concluded, the internal investigation will show that the allegations of improper conduct against me are baseless," Christo said.

Christo has been general manager at WBUR since 1979.

She is an influential figure in the world of public radio, credited with turning WBUR from a radio backwater into one of the most highly regarded public radio stations in the country.

Under Christo, WBUR developed shows such as Car Talk, The Connection and Only a Game, which are distributed to public radio stations around the country.

"Some people in the [public radio] system are larger than life. She's not 'Jane Christo,' she's 'Jane.' Say the first name, and people know who she is," said Michael Janssen, public radio reporter for Current, a newspaper that covers public broadcasting.

"I always associated the success of the station with Jane Christo," said Robert Siegel, senior host of National Public Radio's All Things Considered.

"By background and temperament, she's very different from most public radio station managers. She likes to get things done."

CHRISTO'S CAREER at WBUR has not been without controversy, most notably the 2001 split with Christopher Lydon, then-host of The Connection.

When Christo came to Rhode Island on a Friday to announce WRNI-AM would be put up for sale the following Monday, she infuriated public radio supporters in the state.

The sale announcement prompted an examination of the finances of both WRNI and WBUR by The Journal and others.

Public records showed WRNI had run up $9.4 million in deficits in its first five years of operation.

Deficits also dragged down WBUR, with expenditures exceeding revenues by $14.1 million over the same five years. That figure included the WRNI shortfalls.

Yesterday, proponents of Rhode Island public radio were wondering what happens next.

"We had no knowledge of this in advance. It's another one of those blockbuster announcements from BU," said Henry Sharpe Jr., chairman of the original capital campaign for the Foundation for Ocean State Public Radio.

"I can't say what will happen now. The pot is on the stove, but I don't know what's cooking."

Eugene Mihaly, president of the foundation, said representatives of the organization hope to meet with Boston University officials as soon as possible to discuss the future of WRNI.

"With [Christo] gone, it raises the possibility of a renewed relationship with WBUR. . . . Perhaps it's an opportunity that can be made out of what otherwise had been a rather sad few weeks," said Ronald V. Gallo, president of The Rhode Island Foundation, a major supporter of WRNI.

Nancy Sterling, a BU spokeswoman, said Christo's resignation does not change the status of WRNI and WXNI. BU has not taken the stations off the market.

The sale of WRNI was delayed by Boston University after inquiries from Rhode Island Attorney General Patrick C. Lynch and Governor Carcieri.

Lynch, who oversees distribution of charitable assets in the state, asked BU and WBUR for a long list of documents pertaining to WRNI, including financial statements, donor lists and tax records.

Yesterday, Lynch said he had received a batch of documents from WBUR's attorneys. While most of what he requested has been delivered, he said, there are items missing, including some financial audits and correspondence.

That's not unusual when dealing with a large volume of material, Lynch said, and he has no reason to believe WBUR is acting in bad faith.

"Ms. Christo's resignation won't change what we're doing," Lynch said. "As far as I'm concerned, it's not pertinent to my ongoing review of the troubling circumstances surrounding the sale of WRNI."

ON THE DAY of her resignation, Christo continued to have both admirers and critics.

National Public Radio legal correspondent Nina Totenberg called Christo "the most creative, tough-minded, innovative station manager" in the NPR system.

Totenberg said she knew nothing about the WRNI situation or other factors that may have led to Christo's resignation, and praised her work building WBUR into a public radio powerhouse.

"She just took the ball and ran with it and built a football stadium," Totenberg said. "If there was a problem in the bleachers, I'm very sorry, but she still gets credit for building the stadium."

Several WBUR and WRNI employees contacted by The Journal would not comment publicly on Christo's resignation.

One former WBUR staffer willing to speak publicly was Jennifer Schmidt, once a producer and editor at the station. She criticized Christo's management style, her spending of money raised from the public, and what she said was secrecy surrounding station finances.

"All financial things were a mystery," Schmidt said. "There's nothing open about that station."

Schmidt left WBUR in 2002, but had talked recently with her former colleagues. "I think many people are holding their breath and hoping for Jane Christo's downfall at WBUR," Schmidt said Thursday.

Sam Fleming, WBUR's programming director, said many station employees appeared surprised when Christo announced her decision at a staff meeting.

"I think people are sad because she represented a vision of really high-quality public radio journalism and obviously had a great track record for that," Fleming said. "Beyond that, I think people are a little bit surprised about all of the things that have happened over the past couple weeks."