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Panama’s comptroller audit reveals irregularities in the 25-year renewal of a port concession granted to a Hong Kong-based company.
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The country may have lost an estimated $300 million due to accounting issues and undisclosed operations.
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The findings have been sent to Panama’s Maritime Authority, which could terminate the contract.
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Amid U.S. concerns over Chinese influence, CK Hutchison has agreed to sell its stake to a U.S.-led consortium.
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Panama denies any foreign control of the canal and maintains full operational authority.
Panama’s Comptroller-General Anel Flores announced that an audit into Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison Holdings, has revealed substantial irregularities. These include missed payments, inaccurate financial records, and undisclosed business activities. As a result, Panama is believed to have suffered around $300 million in financial losses.
Government Response and Possible Contract Termination
The audit findings have been forwarded to Panama’s Maritime Authority, which oversees all port operations in the country. With clear indications of multiple contract violations, the authority holds the power to revoke the concession agreement. The comptroller emphasized that serious explanations are needed for the breaches identified.
Geopolitical Implications and U.S. Concerns
This audit comes at a time when U.S. officials are voicing concerns about Chinese influence in the Panama Canal. Former U.S. President Donald Trump recently argued that the United States should never have relinquished control of the canal and suggested the need to regain influence. The release of the audit coincided with a visit from U.S. Defense Secretary Pete Hegseth, who arrived in Panama for a regional security summit.
Ownership Shift to a U.S.-Led Consortium
In a related development, CK Hutchison has agreed to sell its controlling stake in Panama Ports Company to a consortium led by BlackRock Inc., a major American asset manager. This strategic shift could effectively bring the port operations under U.S. influence, easing tensions around perceived Chinese control.
Panama Affirms Sovereignty Over the Canal
Despite global scrutiny, the Panamanian government maintains full control over the Panama Canal. Officials clarified that while international companies may operate port terminals, this does not equate to foreign control over canal operations. They continue to assert Panama’s authority and independence in managing one of the world’s most critical maritime routes.
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Source: AP News
