(April 9): CK Hutchison Holdings Ltd rejected accusations it failed to pay about 1.2 billion balboas (US$1.2 billion or RM5.4 billion) to the Panamanian state over the concession contract to run the two key ports in the Central American country.

The accusations are “absolutely contrary to reality.” and the company has invested more than 1.695 billion balboas, Panama Ports Co, a unit of the Hong Kong-listed conglomerate, said in a statement. That surpasses the 50 million balboas required under the original concession contract and the one billion balboas agreed under the addendum to operate the Balboa and Cristobal port terminals. Panama’s comptroller general confirmed this in 2020 after a thorough audit process, the company said.

“We firmly believe that respect for legal certainty gives companies and investors the certainty that Panama is a safe country in which to invest,” Panama Ports said in the statement. “PPC continues to call for respectful coordination and consultation to protect the concession that has provided high-quality services for the benefit of Panama and the world.”

The port operator’s response came after Panama’s top auditor accused the company of wrongdoing, including failing to obtain required approvals for a contract extension in 2021 and owing millions in dues. The accusation ratchets up pressure on Hong Kong billionaire Li Ka-Shing’s CK Hutchison and its precarious position in the middle of a US-China spat. While the firm is set to make US$19 billion in cash proceeds from its deal to sell its ports business, the agreement has enraged Beijing after US President Donald Trump touted it as reclaiming the Panama Canal.

The canal, used mainly by the US and China, became a geopolitical lightning rod after Trump vowed to retake it. In a news conference Tuesday, US Defence Secretary Pete Hegseth pointed to ports operated by CK Hutchison on either end of the trade route as potential threats to US and Panamanian interests.

CK Hutchison shares extended declines on Wednesday, erasing all their advances since the company agreed to sell its Panama Canal port assets to a BlackRock Inc.-led consortium last month.

Uploaded by Magessan Varatharaja