Hong Kong firm appeals for legal protection amid legal woes in Panama
- A subsidiary of CK Hutchison Holdings is facing lawsuits in Panama regarding its contract over port operations.
- Panama's Comptroller General alleges the contract is abusive, impacting future operations.
- The company asserts its contributions to the economy while seeking to collaborate with the government.
In Panama, a subsidiary of the Hong Kong conglomerate CK Hutchison Holdings has recently sought legal protection for its business interests amid ongoing lawsuits challenging its port operations in the Panama Canal. Panama Ports Company, responsible for operating the Balboa and Cristobal ports, is faced with two lawsuits filed by the Comptroller General of Panama that aim to declare its contract unconstitutional. These lawsuits allege that the contract, which grants operation rights to the subsidiary, is abusive to Panama's interests and that the renewal of the contract in 2021 was irregular. Panama Ports Company has countered these claims by highlighting its positive contributions to the local economy, including the creation of over 25,000 jobs and significant financial contributions. Additionally, the company aims to collaborate with the Panamanian government to facilitate constructive discussions about its future operations. Meanwhile, Panama's President José Raúl Mulino publicly supported the comptroller's position, indicating a potential shift in the government's stance towards its contracts with foreign entities.