Panama’s Comptroller General office will file a lawsuit against the officials who authorized the renewal of a 25-year port concession to a company led by CK Hutchison, the comptroller general said on Monday, as a key audit of the contract is expected to be completed soon.
The contract to Panama Ports Company for the Balboa and Cristobal ports near the Panama Canal, in which Hong Kong-based CK Hutchison has a 90% stake, was renewed in 2021.
The Panamanian government started the audit in January and in March a group led by U.S. investment firm BlackRock announced a $22.8 billion deal to buy most of CK Hutchison’s global ports business including the two ports in Panama.
The audit has so far determined that Panama “left $1.3 billion on the table,” Comptroller General Anel Flores told reporters in a press conference, referring to tax incentives and benefits granted by the government in the contract.
In February, Panama’s Attorney General released a binding opinion finding that the port contract was unconstitutional. The Supreme Court will have the last word on that.
Once finished, the audit results will be submitted to Panama’s Maritime Authority, which oversees the ports, Flores said.
The audit is seen as a possible roadblock in BlackRock’s offer for CK Hutchison’s port business, which has been criticized by China. If Panama’s Comptroller General confirms irregularities in the concession renewal or the Supreme Court declares the contract to be unconstitutional, the concession could be revoked, lawyers and experts have said.
U.S. President Donald Trump, who has threatened to take control of the Panama Canal due to the presence of Chinese and Hong Kong firms in the Central American country’s maritime business, celebrated BlackRock’s announced deal for CK Hutchison’s ports. The transaction has not been completed.