CK Hutchison's Billion-Dollar Investment Faces Audit Scrutiny in Panama

CK Hutchison, which owns Panama Ports Company, has invested $1.7 billion in two Panamanian ports, surpassing the required investment under its contract. However, these investments are under scrutiny by Panamanian authorities. The audit revealed potential underpayments, amid heightened political tensions involving U.S. and Chinese interests in the Panama Canal.

A Hong Kong-based conglomerate, CK Hutchison, has come under scrutiny after investing $1.7 billion in two ports near the Panama Canal. This investment surpasses the requirements set within its operational contract, currently being audited by Panama's government.

CK Hutchison, holding a 90% stake in Panama Ports Company (PPC), had its 25-year concession for Balboa and Cristobal ports renewed in 2021. However, the audit has revealed that $1.3 billion was potentially lost due to tax incentives granted to the company, according to Panama's Comptroller General Anel Flores.

This financial probe coincides with a major deal involving U.S. investment firm BlackRock, and a brewing geopolitical tension, as U.S. President Donald Trump suggests a U.S. takeover of the Panama Canal, concerned about the presence of Chinese firms. Meanwhile, Panama's authorities continue to review the contract and its renewal process.

(With inputs from agencies.)