Panama Comptroller Seeks Supreme Court Nullification of CK Hutchison Port Contract

Panama's Comptroller General, Anel Flores, has filed lawsuits with the country's Supreme Court seeking to nullify the 2021 contract extension with Hong Kong-based CK Hutchison's Panama Ports Company, which controls two key ports at the Panama Canal. Flores criticized the contract for being one-sided, abusive, and poorly negotiated, citing numerous irregularities found during a months-long audit, though he has not released full details. The contract, originally awarded in 1997 and extended in 2021 without a competitive bidding process, grants CK Hutchison a 25-year concession to operate the Balboa and Cristobal ports, which are strategically crucial to Panama. Flores emphasized Panama's sovereign ownership of the ports and expressed dissatisfaction with the contract's terms and the handling of the renewal process by a previous government. The legal challenges could complicate a planned sale of CK Hutchison's port assets to a consortium involving MSC and BlackRock, amid international interest including from Chinese state-run COSCO. CK Hutchison maintains that the contract is valid and compliant with legal requirements, highlighting previous certifications by Panamanian authorities.