live World
Panama lawsuit requests axing Hong Kong firm's canal concessions
A cargo ship sails next to the Panama Canal's Balboa port, which is managed by Panama Ports Company, in Panama City on Feb 1, 2025. A lawsuit was filed on Feb 3, 2025, to cancel the concession of Panama Ports Company for operating two ports on the canal. (File photo: AP /Matias Delacroix)
This audio is generated by an AI tool.
PANAMA CITY: Two Panamanian lawyers filed a complaint on Monday (Feb 3) to cancel the concession of a Hong Kong-based company for operating two ports on the Panama Canal, following United States President Donald Trump's threats to seize the vital waterway.
A subsidiary of CK Hutchison Holdings - owned by Hong Kong billionaire Li Ka-shing - manages two of the canal's five ports, an arrangement in place since 1997 via a concession from the Panama government.
But Norman Castro, one of the lawyers in the case brought before the Supreme Court, told reporters the contract "violates what the constitution says in about 10 articles".
"After a detailed analysis of the contract ... we decided that an action for unconstitutionality was the appropriate means" to challenge the concession, said Julio Macias, another lawyer behind the suit.
The complaint also accuses the Hong Kong subsidiary of not paying taxes and benefits due to a series of advantages that are allegedly against the law.
