Key facts
- Panama's Supreme Court declared the 25-year port concession held by Panama Ports Company, a subsidiary of CK Hutchison Holdings, unconstitutional on January 29, 2026.
- The court ruling followed an audit alleging financial irregularities, including payments not made and accounting errors.
- The comptroller general's office estimates that these irregularities cost taxpayers at least $300 million since 2021 and approximately $1.2 billion during the original contract term.
- Comptroller General Anel Flores is sending prosecutors audit material on former executives of CK Hutchison's local subsidiary.
- A.P. Moller-Maersk will take over transitional management of the ports until a new bidding process occurs.
- CK Hutchison holds a 90% stake in Panama Ports Company.
Panama's Supreme Court declared on January 29, 2026, that the 25-year port concession held by Panama Ports Company (PPC), a subsidiary of Hong Kong-based CK Hutchison Holdings, is unconstitutional. The ruling followed an audit by Panama's comptroller general, Anel Flores, which identified alleged financial irregularities.
Flores stated that the audit revealed issues such as payments not made, accounting errors, and ghost concessions operating since 2015. These irregularities are estimated to have cost taxpayers at least $300 million since the concession's extension in 2021, with an estimated total loss of approximately $1.2 billion during the original 25-year contract term. Flores also objected that the concession extension was approved without his office's consent.
Panama's comptroller filed an official challenge of the contract before the Supreme Court on July 30, 2025. The comptroller general's office plans to send prosecutors more audit material on former executives of PPC next week as part of a criminal investigation.
President Jose Raul Mulino assured the public that port operations would continue uninterrupted during the transition. A.P. Moller-Maersk's local subsidiary will manage the ports temporarily until a new bidding process for similar concessions takes place. Former Panama Canal Administrator Alberto Alman has been appointed to oversee this transitional phase.
Panama Ports Company stated it had not been officially informed of the court decision and insisted its concession was obtained through transparent bidding. The company reserved all legal options and warned that a decision lacking legal basis jeopardized its operations and the livelihoods of thousands of Panamanian families. The Hong Kong government expressed strong opposition to the ruling and advised caution for investments in Panama, while China's Foreign Ministry spokesperson declared they would safeguard the legitimate rights and interests of their Chinese company.