Economy
Panama's comptroller demands cancellation of port deal with Hong Kong conglomerate
The controller found serious irregularities: 'This wasn't just a bad contract; it was abusive, exploitative and clearly against the interests of the nation.'
![Two men stand at the Miraflores Locks on the Panama Canal. [Martin Bernetti/AFP]](/gc4/images/2025/07/31/51361-panama-600_384.webp)
By AFP and Entorno |
Panama's comptroller general has filed two lawsuits with the country's Supreme Court seeking to revoke a controversial concession contract that allows a Hong Kong-based company to operate two key ports at both ends of the Panama Canal.
The legal action targets Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison Holdings, which has managed the Balboa and Cristobal ports since 1997.
The lawsuits arrive as Hutchison negotiates a $19 billion global divestment deal, including the sale of its Panamanian operations, to a consortium led by the US investment giant BlackRock.
"These are multibillion-dollar transactions happening across the world, and Panama isn't even at the table, even though we are the rightful owners of these ports," said Comptroller General Gerardo Anel Flores at a news conference on July 30.
"It's unacceptable for foreign actors to be deciding the future of assets that belong to the Panamanian people," he added.
The first lawsuit asks the court to declare the original 1997 concession "unconstitutional." The second challenges the legality of a 25-year renewal granted in 2021, citing alleged irregularities.
Alleged violations
In April, Flores' office released the results of an audit that accused Panama Ports of violating its contract and failing to pay more than $1.2 billion in dues to the Panamanian government.
Prosecutors have since launched an investigation of the company.
"We found serious irregularities," Flores said. "This wasn't just a bad contract; it was abusive, exploitative, and clearly worked against the interests of the nation."
Hutchison's proposed sale to BlackRock has drawn international scrutiny. Chinese regulators, reportedly displeased with the deal, have launched a review. Hutchison is now exploring the inclusion of a Chinese strategic investor in the consortium to gain Beijing's approval.
The controversy revives long-standing concerns about Chinese influence in the Panama Canal. US officials accused Beijing of leveraging Hutchison's port operations to gain a strategic foothold in the region.