"Panama Suffers Losses Exceeding 1.7 Trillion KRW Over 20 Years"
Comptroller General Criticizes CK Hutchison Holdings' Operation of Canal Ports
The Comptroller General of Panama strongly criticized the operation of Panama ports by the Hong Kong-based company CK Hutchison Holdings, likening it to an "act of robbery."
On the 14th (local time), Anel Flores, Panama's Comptroller General, said in an interview with the local media outlet Radio Panama, "The operation of Panama Canal ports by Panama Port Company (PPC) is the worst robbery case in Panama's history," adding, "We conceded too much to them and suffered enormous financial losses."
PPC is a subsidiary of the Hong Kong-based company CK Hutchison Holdings that operates the Panama Canal. According to the contract, Panama holds a 10% stake. PPC operates two of the five Panama Canal ports, Balboa Port and Cristobal Port. Recently, the Panama Comptroller's Office announced that its audit of PPC uncovered legal violations such as payment defaults and accounting errors.
Comptroller Flores stated, "After establishing subsidiaries, PPC diverted some profits to these subsidiaries, thereby reducing the parent company's net income," and claimed, "Over the past 24 years, this method has caused us losses exceeding $1.2 billion (approximately 1.7 trillion KRW)." If PPC had not diverted profits to reduce net income, the Panamanian authorities, as shareholders, could have received higher dividends.
Additionally, the Panama Comptroller's Office determined that the amount of taxes that Panama's tax authorities should have collected was reduced. Flores said that detailed related data had been secured from the prosecutor's office and added, "We will expand the scope of audits to other port facilities in the future."
This audit has drawn attention particularly because it took place amid ongoing pressure from U.S. President Donald Trump to regain control of the Panama Canal. Some point out that although Panama President Jos? Ra?l Mulino publicly opposed President Trump's claims several times, the direction of foreign policy ultimately aligns with the United States.
President Trump has repeatedly stated in his diplomacy toward Latin America that the United States should regain control of the Panama Canal. On the 8th, U.S. Secretary of Defense Pete Hegseth visited the Panama Canal and said, "We will take back the Panama Canal from Chinese influence," applying comprehensive pressure on the Panamanian government.
China is also actively intervening in the Panama Canal issue to counter these U.S. moves. Previously, Hong Kong's CK Hutchison Holdings agreed to sell its entire 90% stake in PPC to the U.S. asset management firm BlackRock, but the final contract signing was delayed due to China's antitrust investigation.
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