Hong Kong company’s concession to operate Panama Canal ports is ruled unconstitutional

Panama's Supreme Court ruled that the concession held by CK Hutchison Holdings, a Hong Kong company, to operate ports at both ends of the Panama Canal was unconstitutional. The ruling follows an audit alleging irregularities in the 25-year extension granted in 2021. The audit by Panama's comptroller found unpaid payments, accounting errors, and the existence of a "ghost" concession, costing the government an estimated $300 million since the extension and $1.2 billion during the original contract. The comptroller challenged the contract in court after the extension was granted without the required endorsement. The U.S. government, under the Trump administration, had previously expressed concerns about China's influence over the canal, viewing the port operations as a national security issue. The court's decision leaves the future operation of the ports uncertain.

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