CK Hutchison refutes accusations of unpaid $1.2 billion to Panama

Published 09/04/2025, 17:04
© Reuters.

Investing.com -- CK Hutchison Holdings Ltd has denied allegations that it neglected to pay approximately 1.2 billion balboas ($1.2 billion) to the Panamanian state related to the concession contract to operate two crucial ports in the Central American nation.

The Panamanian Attorney General Luis Carlos Gomez announced on Tuesday that an investigation had been launched into a contract awarded to Hong Kong-based CK Hutchison for the management of two ports. This follows the Comptroller General Anel Flores's criticism of the contract, renewed in 2021, earlier this week. Flores claimed that Panama "left $1.3 billion on the table," referring to tax incentives and benefits granted to CK Hutchison by the government.

In a statement by CK Hutchison's Panama Ports Co (PPC) unit, the company outlined its commitment to the Panamanian state through substantial investments exceeding 1,695 million balboas, surpassing the 1,000 million balboas agreed under the addendum to the concession contract. The addendum, approved by Law 55 of 2005, also included an additional payment of 102 million balboas for inherited infrastructures. The PPC statement emphasized that these commitments allowed all port operators in Panama to compete fairly.

The company further clarified that PPC is the only port company in Panama where the state holds a 10% stake. Over the last 28 years, PPC has paid the Panamanian state 126 million balboas in dividends, a benefit exclusive to the state from PPC and not from other port operators.

The PPC statement also highlighted that all tax exemptions granted to PPC under the concession contract and its addenda are identical to the tax exemptions granted to all other port operators in Panama.

According to the Comptroller General of the Republic, PPC has contributed more than 5,900 million balboas to the national economy through added value, indirect effects, payments to the state, and investments made.

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