US EditionHong Kong company’s concession to operate Panama Canal ports is ruled unconstitutional
The court annulled CK Hutchison’s 25-year port concession citing unconstitutional contracts and alleged $1.2 billion losses, affecting a major shipping hub crucial to global trade.
- Late Thursday, Panama Supreme Court ruled the concession held by Panama Ports Company unconstitutional and issued only a brief statement with no guidance on the ports at either end of the Panama Canal.
- Following the audit, Anel Flores, Panama's comptroller, challenged the concession on July 30 after alleging unpaid payments, accounting errors, and a 'ghost' concession since 2015.
- The audit estimated government losses of about $300 million since the extension and $1.2 billion over the original 25-year contract, and CK Hutchison Holdings denied the comptroller's allegations as the audit and challenges proceeded.
- The dispute carried explicit U.S. national-security overtones as U.S. officials framed port operations as a priority for the Trump administration, with Marco Rubio's Panama visit underscoring Washington's focus.
- The planned sale to a consortium including BlackRock was announced last year while the concession faced legal scrutiny after the comptroller's July 30 challenge, and the Chinese government later objected.
180 Articles
180 Articles
Kevin Marino Cabrera hails Panama Supreme Court canal ruling
U.S. Ambassador Kevin Marino Cabrera is celebrating a decision by Panama’s highest court that a concession given a Hong Kong company to run ports at both ends of the canal violates the country’s constitution. “The decision by Panama’s Supreme Court of Justice to nullify CK Hutchison’s concession for the Balboa and Cristobal ports strongly affirms the rule of law. It confirms that Panama’s independent judiciary enforces legal compliance, transpar…
Panama Canal ports will keep operating following court findings
PANAMA CITY — Panama's president moved to assure the public on Friday that critical ports at both ends of the Panama Canal will continue to operate without interruption — a day after the country’s Supreme Court ruled that the concession…
UPDATE 2-Hong Kong port operator contract violated Panama constitution, court rules
UPDATE 2-Hong Kong port operator contract violated Panama constitution, court rules A contract held by a Hong Kong company to operate ports at the Panama Canal violated the Panama constitution and did not serve the public interest, the country's Supreme Court said in a Thursday decision that voided a deal made in the 1990s. The court issued its decision on Thursday, but it did not formally release its ruling or explain its rationale. Local tel…
Panamanian Supreme Court Axes Hong Kong-Based Company Contract to Operate Panama Canal, China Pissed
Already a subscriber? Make sure to log into your account before viewing this content. You can access your account by hitting the “login” button on the top right corner. Still unable to see the content after signing in? Make sure your card on file is up-to-date. China has vowed to take “all necessary measures” to safeguard its interests after Panama’s Supreme Court annulled a long-standing contract that allowed a Hong Kong-based company to o…
From Beijing they have denounced that Washington pressured CK Hutchison to force the sale of Panama Canal ports to consortia linked to U.S. interests, including the BlackRock group.
Panama’s Supreme Court Just Upended a Key China-Linked Presence at the Canal
Key Points Panama’s Supreme Court ruled the Balboa and Cristóbal port concession unconstitutional, ending its legal basis. A comptroller audit attacked the 2021 extension without bidding and alleged about $1.3 billion in lost public revenue. The move hits amid U.S.-China rivalry and a proposed $23 billion sale of 40-plus ports tied to BlackRock talks. Panama’s […]
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