(Bloomberg) – CK Hutchison Holdings Ltd rejected the charges that it failed to pay about 1.2 billion Barbass ($1.2 billion) to pay the Panamanian state a concession contract to operate two key ports in Central American countries.
The accusation is “absolutely contrary to reality.” The company said in a statement that it has invested 1.695 billion in Panama Port Company, the unit of a listed conglomerate in Hong Kong. This exceeded the 50 million Barbas required for the original concession contract, and Barbas 1 billion agreed to operate the Balboa and Cristobal port terminals in the appendix. The company said Panama’s Comptroller General confirmed this in 2020 after a thorough audit process.
“We strongly believe that respect for legal certainty can enable companies and investors to determine Panama as a safe investment country,” Panama Port said in a statement. “The PPC continues to call for respectful coordination and consultation to protect concessions to provide high-quality services to the interests of Panama and the world.”
The port operator’s response comes after Panama’s top auditor alleged wrongdoing, including failure to obtain a 2021 contract extension requirement and owed millions of member dues. The allegations have increased pressure on Hong Kong billionaire Li Ka-Shing’s CK and Hutchison and its instability in the middle of spitting in the U.S. and China. While the company will make $19 billion in cash from its deal to sell its port business, the deal has angered Beijing after U.S. President Donald Trump touted it as a repossessment of the Panama Canal.
After Trump vowed to retake it, the canal, mainly used by the United States and China, became a geopolitical lightning rod. In a press conference Tuesday, U.S. Secretary of Defense Pete Hegseth pointed out that the ports CK Hutchison operates at both ends of the trade route are a potential threat to our and Panama interests.
CK and Hutchison shares fell on Wednesday, eliminating all progress since the company agreed to sell its Panama Canal port assets to a consortium led by Blackrock Inc.
– Assistance with Guillermo Molero.
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