Panama Court Ruling Raises Questions About Canal Ports
Panama City – The Supreme Court of Panama has ruled that the contract for a company running ports at both ends of the Panama Canal is unconstitutional. The company, Panama Ports Company, is part of a Hong Kong-based group, CK Hutchison Holdings.
The court’s decision follows an audit that found problems with how the contract was extended for 25 years in 2021.
Some see this as a positive step for American interests. The previous U.S. administration under President Trump had concerns about possible influence from China over the Panama Canal, which is a key waterway for global trade.
The court’s statement did not say what will happen to the ports now. Panama Ports Company claims its contract was awarded fairly through an open bidding process. The company also warns that the ruling could hurt the economy and many Panamanian families who depend on the ports for their jobs.
The company said it will consider all legal options to protect its rights.
An expert, Edwin Cabrera, believes that the ports will likely continue to operate, with the Panama Maritime Authority taking over.
Last year, CK Hutchison Holdings announced a plan to sell its stake in the Panama ports. The deal faced difficulties, possibly due to objections from the Chinese government. The situation shows the delicate balance businesses face when dealing with China, especially when U.S.-China relations are strained.
The audit that led to the court’s decision found issues with payments, accounting, and other irregularities, costing the government millions of dollars. The government believes the contract extension was not properly approved. The company disputes these findings.
