The Hong Kong firm responsible for managing two key Panama Canal ports has strongly rejected an audit that claims it owes $1.2 billion under its concession agreement.
Panama Ports Company (PPC), a subsidiary of the Hong Kong conglomerate CK Hutchison, issued a statement on Wednesday, April 9, 2025, refuting the findings, stating that the assertion that PPC had failed to pay around $1.2 billion to the Panamanian government is “absolutely contrary to reality.”
The audit, released on Monday by Panamanian authorities, claimed to have found “numerous breaches” of the concession agreement awarded to the company.
This audit came at a time when tensions between the United States and China over the waterway have escalated. US President Donald Trump had previously threatened to seize the canal to limit Chinese influence.
Anel Flores, Panama’s state comptroller, concluded that the country had not received the $1.2 billion it was owed under the contract, pointing out that PPC had benefited from numerous tax exemptions and had irregularities in a previous audit.
However, PPC defended its position, saying it had made “significant investments” exceeding $1.695 billion as required under the original concession and its addendum. The company claimed this was confirmed by a 2020 audit conducted by local authorities.
“Any statement suggesting that PPC has failed to make payments under the concession contract signed in 1997 must consider the respective addenda,” the company said. “To suggest otherwise distorts the legal relationship between PPC and the Panamanian government, contradicting the state’s acts over the years.”
The statement was issued just hours after US Defense Secretary Pete Hegseth visited Panama, warning that the United States would not tolerate China “threatening” the operations of the crucial waterway.
The United States has expressed concerns over national security, arguing that it poses a risk for a Hong Kong company to operate ports at both ends of the Panama Canal, which handles five per cent of global shipping traffic.