Panama Plans Lawsuit Over CK Hutchison Port Concession Renewal

Panama's Comptroller General announced plans to file a lawsuit against officials who approved the 2021 renewal of a 25-year port concession to CK Hutchison's Panama Ports Company (PPC), citing systemic contractual violations uncovered in a recent audit. The audit revealed that PPC avoided $1.3 billion in payments due to tax evasion and mismanagement, raising questions about the legitimacy of the concession and jeopardizing CK Hutchison's proposed $22.8 billion sale of its global ports business to a BlackRock-led consortium. Comptroller Anel Flores criticized the 1997 contract for prioritizing corporate interests over national welfare and indicated that further legal actions could follow based on the audit results. The case has drawn attention from both Panamanian authorities and international observers, highlighting increasing scrutiny over foreign investments in critical infrastructure. As the audit nears completion, its findings may lead to the revocation of the concession, significantly impacting one of the world's key trade routes. The situation remains fluid as Panama's Supreme Court is expected to play a crucial role in the outcome of this legal challenge.