Panama auditor to send prosecutors more material in canal-port concession probe

Panama’s comptroller general, Anel Flores, said his office would send prosecutors further audit material concerning a disputed concession to operate ports at both ends of the Panama Canal. Flores said the documents would concern former executives of Panama Ports Company, the local subsidiary of Hong Kong conglomerate CK Hutchison, and former board members of the Panama Maritime Authority. Panama Ports Company operated the Balboa and Cristobal terminals until February.

Flores urged prosecutors to hold those involved accountable for changes to the concession terms that he said disadvantaged the country, although he did not name individuals or announce charges. The criminal investigation began after Flores presented an audit alleging that Panama had received $483m from the concession, compared with about $1.34bn owed under the original agreement. He also accused the company of using outsourced “satellite” companies to drain profits.

The company denied the allegations. The comptroller and prosecutors have disagreed over the pace and completeness of the investigation. Prosecutors said their file already contained more than 360 volumes and that they were awaiting an expanded audit.

Panama’s Supreme Court later declared unconstitutional the 1997 law approving the concession and its 2021 extension. Panama Ports Company filed an arbitration claim exceeding $2bn, while CK Hutchison brought a separate investment treaty case seeking more than $1.5bn. Panama’s government plans to tender the two terminals separately for private concessions lasting 25 to 30 years, with awards expected before mid-2027.

Interim operators currently manage the terminals. Flores said strategically important port infrastructure should be state-owned and privately operated under profit-sharing arrangements, while acknowledging that this was his opinion rather than government policy.