The Hong Kong company has filed for legal protection for investors in Panama

• Panama has filed lawsuits against the contract with Panama Ports Company.
• CK Hutchison claims that its operations have created thousands of jobs.
• The President of Panama supported the position of the General Controller regarding the contract.

Hong Kong — A subsidiary of the Hong Kong conglomerate CK Hutchison Holdings has filed for legal protection for business in Panama on Friday. This came after the company’s contract for managing ports in the Panama Canal was threatened by lawsuits.

In a statement, Panama Ports Company notes that respect for the rule of law is essential for ensuring the safety of investors in Panama as a place for investments. Meanwhile, the General Controller of Panama filed two lawsuits, seeking to invalidate the contract that was awarded for managing the ports on both sides of the canal to the subsidiary company, non-competitive.

Panama Ports Company asserts that its operations positively impacted the economy of the country, creating over 25 thousand direct and indirect jobs and bringing billions of dollars. The company wants to cooperate with the government of Panama to ensure a better future.

CK Hutchison manages the Balboa ports on the Pacific Ocean and Cristobal on the Atlantic coast under a concession contract, signed in 1997 and extended in 2021 for 25 years. In April, the General Controller of Panama reported on identified violations during the audit of Panama Ports Company.

The President of Panama, José Raúl Mulino, expressed support for the controller’s lawsuit and noted that he is waiting for a court decision. He pointed out the possibility of public-private partnership for the ports, although the details are still not disclosed.

CK Hutchison is also planning to sell its port assets group, which includes the American investment company BlackRock. This is a cyclical tension between Beijing and Washington. After months of inactivity, the company is considering the possibility of attracting a Chinese investor for participation in the consortium of buyers.

Panama Ports Company stated that it intends to connect with the government of Panama in due course, emphasizing the importance of cooperation for the future of the company.

Tags: Economy