Panama’s Comptroller General, Anel Flores, announced the filing of two legal actions before the Supreme Court of Justice, one alleging unconstitutionality and the other seeking nullification of the concession contract with Panama Ports Company (PPC), a subsidiary of CK Hutchison.
Flores stated that the unconstitutionality claim concerns the original contract, while the nullity action targets the contract extension that lacked the legally required endorsement.
He said that the legal actions are based on the findings of an audit delivered on 7 April, which revealed numerous irregularities and described the contract as “leonine and abusive against the interests of the country”.
Flores added that the contract led to more than USD 1.3 billion not entering national coffers.
He further asserted that multimillion‑dollar transactions linked to port assets have occurred outside Panama’s involvement, despite Panama owning 10 % of PPC and being the actual owner of the ports at Balboa and Cristóbal.
PPC has operated those two ports since 1997 under a 25‑year concession, automatically prolonged in 2021.
Flores emphasised that the mandate of the Contraloría is to defend public funds and national interests.
The disputed contract extension has complicated a pending US $23 billion global port‑sale deal involving CK Hutchison, BlackRock and Mediterranean Shipping Company (MSC), with the Chinese government pressing for inclusion of Cosco Shipping to rebalance the consortium.
The President of Panama, José Raúl Mulino, backed the Comptroller’s action and raised the possibility of replacing PPC’s role with public‑private partnerships if the courts annul the contract.
Panama Ports Company (PPC), S. A. PPC, a Panamanian corporation, holds a 25‑year port concession for the Balboa and Cristóbal container terminals and is 90 % owned by Hong Kong‑based CK Hutchison. The State of Panama holds the remaining 10 %. PPC has operated both terminals since 1997, with an automatic extension granted in 2021.
CK Hutchison is a Hong Kong‑incorporated multinational conglomerate. Its subsidiary, PPC, manages port terminals in Panama. Recently, CK Hutchison has negotiated a global sale of its port assets—including PPC—to a consortium involving U.S.‑based BlackRock and Mediterranean Shipping Company’s investment arm.