4 months ago
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Panama’s comptroller authority said Monday an audit found irregularities in the renewal of a 25-year port concession in the interoceanic canal and it would request an investigation into the authorisation of the contract to a Hong Kong company.
Comptroller-General Anel Flores said the audit found some payment defaults, accounting miscalculations and some “shadow” operation of companies that the Hong Kong company originally denied, causing Panama around US$300 million in lost revenue.
The release of the audit of Panama Ports Company, which operates ports at both ends of the Panama Canal, comes as US President Donald Trump’s administration alleges Chinese interference in the canal’s operations, which Panamanian authorities have denied.
“There are many violations that will have to be explained,” the Panamanian comptroller said.
He added that the audit’s results will be sent to Panama’s Maritime Authority, which oversees the ports and has the power to terminate a contract.
Panama Ports Company is a subsidiary of Hong Kong-based conglomerate CK Hutchison Holdings. CK Hutchison did not immediately respond to an email seeking comment.
Panama Ports Company won a concession in 1997 to operate the ports of Balboa, in the Pacific, and Cristobal, in the Atlantic, and it was renewed in 2021 for 25 more years.
Trump has threatened to retake control of the Panama Canal, arguing that the United States should have never turned control over to the Panamanians more than two decades ago.
Recently, while the audit was under way, CK Hutchison said it has agreed to sell its controlling stake in Panama Ports Company to a consortium that includes BlackRock Inc, effectively putting the ports under American control.
The Panamanian government maintains it has full control over the Panama Canal and that the Hong Kong-based group’ operations of the ports did not equate to Chinese control over the canal.
AP
English (US) ·