Panama’s comptroller has recommended that the country’s government sue civil servants who signed-off the 25-year concession extension to Hutchison-owned Panama Ports Company’s (PPC) right to operate the ports of Balboa and Cristobal, according to a report.
The contract was extended in 2021. However, responding to intense political pressure from the US over perceived Chinese influence on the operation of the Panama Canal, the country launched an audit of the PPC contract soon after Donald Trump’s inauguration, and last month ruled it “unconstitutional”.
Comptroller General Anel Flores told the press agency Panama had missed out on $1.3bn, due to “tax incentives and benefits granted by the government” to PPC in the contract terms.
The launch of the audit was the reason why the sale of PPC was carved out from the wider $22bn deal that will see Hutchison sell its 80% stake in its international portfolio to the BlackRock-TiL consortium.