Panama Canal Authority searches Hong Kong-linked companys offices in canal port

Panama Authorities Conduct Search at CK Hutchison Subsidiary

A search operation was conducted on Thursday at a subsidiary of Hong Kong-based conglomerate CK Hutchison, according to reports from Panama authorities. The Panama Ports Company (PPC), part of the CK Hutchison group, stated in a statement that the Panamanian government’s actions were “in disregard for the rule of law.” The company claimed that its private storage site was entered without notice and that sensitive corporate data was not safeguarded.

The search follows recent tensions between the US and China over control of Panama’s vital trade canal. In January, US President Donald Trump stated that China was exerting too much influence over the canal. However, Panama’s government has denied Chinese control of the waterway.

In a court ruling last month, Panama’s Supreme Court annulled deals that gave the PPC control over two canal ports. The court ruled that the concessions provided to the company were unconstitutional. China condemned the decision and accused Panama of reacting to “hegemonic” pressure.

The two ports in question, Balboa Port on the Pacific Ocean side and Cristobal Port at the Atlantic end, handle about 39 percent of all container traffic in Panama. The ports are located at the entrances of the Panama Canal but do not fall under the supervision of the autonomous Panama Canal Authority that operates the waterway.

Prior to taking office, Trump repeatedly expressed his desire to take control of the Panama Canal, claiming that the US was being “ripped off” by toll prices. The canal had previously been controlled by the US, but it was handed over to Panama in 1999 under a 1977 treaty signed by then-President Jimmy Carter.

A $23 billion sale of dozens of ports worldwide, including the Panamanian terminals, has been agreed upon between CK Hutchison and a consortium led by BlackRock and the Mediterranean Shipping Company. The deal has faced repeated delays and criticism from Beijing but was welcomed by Trump.

Source: Al Jazeera