Particle.news
Download on the App Store
12 ARTICLES
·
last mo.

Panama Audit Reveals $1.2 Billion in Unpaid Fees by Hong Kong Port Operator

State comptroller Anel Flores confirms contractual breaches by CK Hutchison subsidiary, with legal action being prepared over financial losses tied to Panama Canal ports.

Panama Ports, a subsidiary of logistics giant CK Hutchison, won the concession to operate Balboa port on the Pacific side of the canal and Cristobal port on the Atlantic side in 1997
FILE - Cargo containers sit stacked as cranes load and unload containers from cargo ships at the Cristobal port, operated by the Panama Ports Company, in Colon, Panama, Feb. 4, 2025. (AP Photo/Matias Delacroix, File)
FILE - Cargo containers sit stacked as cranes load and unload containers from cargo ships at the Panama Canal's Balboa port, operated by the Panama Ports Company, in Panama City, Jan. 31, 2025. (AP Photo/Matias Delacroix, File)
A ship sails near the Balboa Port after Hong Kong's CK Hutchison Holdings Ltd 0001.HK agreed to sell its interests in a key Panama Canal port operator to a BlackRock Inc-backed consortium, amid pressure from U.S. President Donald Trump to curb China's influence in the region, Panama City, Panama, March 4, 2025. REUTERS/Enea Lebrun/File Photo

Overview

  • An audit by Panama's comptroller has uncovered extensive breaches in the concession contract held by CK Hutchison subsidiary Panama Ports, resulting in $1.2 billion in unpaid fees.
  • The audit also identified payment defaults, accounting irregularities, and undisclosed operations that cost Panama an additional $300 million in lost revenue.
  • State comptroller Anel Flores announced plans to file a legal complaint with prosecutors over the financial discrepancies in the coming days.
  • The findings coincide with heightened geopolitical tensions, as the United States pressures Panama to reduce Chinese influence in the canal region.
  • CK Hutchison's planned $19 billion sale of 43 global ports, including the Panama Canal ports, to a BlackRock-led consortium faces regulatory and antitrust challenges.