UPDATE 1-Hong Kong port operator violated Panama's constitution, failed to serve public interest, Panama court ruled

The Supreme Court ‌of Panama said a contract held by a Hong Kong company to ⁠operate ports at the Panama Canal failed to “serve the public interest and social welfare,” in its decision on ​Thursday voiding the contracts.

The Supreme Court ‌of Panama said a contract held by a Hong Kong company to ⁠operate ports at the Panama Canal failed to "serve the public interest and social welfare," in its decision on ​Thursday voiding the contracts. While the court announced the ‍decision on Thursday, it had not released the ruling explaining its rationale.

The decision was obtained by local television ⁠station ‌TVN and a ⁠court official confirmed its veracity. Panama Ports Company (PPC), a subsidiary ‍of Hong-Kong based CK Hutchison subsidiary, has held contracts ​since the 1990s to operate container terminals at the ⁠canal's Pacific and Atlantic entrances.

The court said the contract violated ⁠Panama's constitution because it gave the company exclusive privileges and tax exemptions unavailable to other competitors, ⁠lacked environmental impact assessments and required the government to seek the ⁠company's ‌approval before granting future concessions.

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