Panama Ports Controversy: $1.2 Billion Dispute Under Scrutiny

A Hong Kong company's subsidiary faces accusations of not paying $1.2 billion in Panama port renewal fees. The Panama Ports Company refutes these allegations, citing significant investments. The controversy arises amid US-China tensions and US concerns over canal operations. Legal discussions on contractual obligations continue.

The Panama Ports Company, a subsidiary of Hong Kong conglomerate CK Hutchison Holdings, is entangled in a dispute regarding alleged unpaid fees amounting to $1.2 billion in port concessions in Panama. The company vehemently denies these claims, pointing to its substantial investments which it says have surpassed contractual obligations.

The controversy emerges during heightened US-China tensions, particularly concerning the strategic Panama Canal. Panama's comptroller authority recently highlighted irregularities in the renewal of a 25-year concession for the ports of Balboa and Cristobal, prompting a stern denial from the Ports Company.

Amid US Defense Secretary Pete Hegseth's visit to Panama, the US has expressed firm opposition to any potential interference by China in the canal's operations. The situation underscores the geopolitical significance of the canal and the complexities of international port management.

(With inputs from agencies.)