Panama's comptroller accuses CK Hutchison of serious financial irregularities

In March 2025, Panama's comptroller authority conducted an audit that uncovered irregularities in the renewal of a 25-year port concession for the Panama Canal's ports operated by a Hong Kong company. The audit highlighted payment defaults, accounting miscalculations, and undisclosed company operations, which collectively cost Panama around $300 million in lost revenue. The results of the audit were particularly concerning as they coincided with rising tensions regarding Chinese influence in the canal's operations, as alleged by the U.S. government. The audit results indicated that the Hong Kong-based CK Hutchison Holdings, which controlled the Panama Ports Company that manages the ports of Balboa and Cristobal, had improperly extended its contract with Panama's Maritime Authority. Anel Flores, the Panamanian Comptroller-General, revealed that the company failed to pay around $300 million while using tax breaks to minimize over $850 million in payments. CK Hutchison was also found to have breached an agreement sharing profits with the Panamanian government, undermining the financial integrity of their operational agreement. As the audit progressed, concerns rose that the planned transfer of control from CK Hutchison to BlackRock, an American investment management company, could be jeopardized. The U.S. administration had previously expressed support for this acquisition as part of a strategy to diminish Chinese influence in the Panama Canal area. However, due to the findings of the audit and the lack of required clearances by CK Hutchison, the deal was thrown into uncertainty. The subsequent legal process following the audit could take between six months to a year, during which criminal charges may be filed against CK Hutchison. This development has sparked debate and concern regarding foreign ownership and operational control of such a critical international shipping route as Panama seeks to maintain its authority and the strategic importance of the canal amid geopolitical tensions. The audit and the resulting actions by Panama's government position the situation as a critical case study in international relations, corporate governance, and economic security in Central America.