Lawsuit looms over Panama port deal linked to CK Hutchison

The agreement was last renewed in 2021.

A lawsuit will be filed against officials who approved the renewal of a 25-year port concession in Panama to a company led by Hong Kong’s CK Hutchison, according to a report by Reuters citing the country’s comptroller general.

According to the news agency, the contract with Panama Ports Company for the Balboa and Cristobal ports, in which CK Hutchison has a 90% stake, was renewed in 2021. An audit of this deal will be completed soon.

So far, the audit process has revealed that Panama "left $1.3 billion on the table," Comptroller General Anel Flores was quoted in the report. He was referring to tax incentives and benefits granted by the government in the contract.

Pending the Supreme Court decision, Panama’s attorney general found the contract unconstitutional.

The audit results, which will be submitted to the country’s Maritime Authority, is expected to be a roadblock to BlackRock $22.8b offer to buy most of CK Hutchison's global ports business including the two ports in Panama.