PANAMA CITY: Two Panamanian attorneys filed a grievance on Monday (Feb 3) to cancel the concession of a Hong Kong-based firm for working two ports on the Panama Canal, following United States President Donald Trump’s threats to grab the important waterway.
A subsidiary of CK Hutchison Holdings – owned by Hong Kong billionaire Li Ka-shing – manages two of the canal’s 5 ports, an association in place since 1997 through a concession from the Panama authorities.
However Norman Castro, one of many attorneys within the case introduced earlier than the Supreme Court docket, instructed reporters the contract “violates what the structure says in about 10 articles”.
“After an in depth evaluation of the contract … we determined that an motion for unconstitutionality was the suitable means” to problem the concession, mentioned Julio Macias, one other lawyer behind the go well with.
The grievance additionally accuses the Hong Kong subsidiary of not paying taxes and advantages resulting from a sequence of benefits which are allegedly towards the regulation.
Panama Ports Firm – a CK Hutchison Holdings subsidiary – presently manages the ports of Cristobal on the canal’s Atlantic aspect and Balboa on the Pacific aspect.
That association was robotically renewed in 2021 for one more 25 years.
The case comes after Trump threatened to take again the canal – constructed by the US and handed to Panama in 1999 – as he mentioned China was successfully “working” it.
Temperatures have lowered since Secretary of State Marco Rubio’s current go to to the Central American nation, with Panama President Jose Raul Mulino asserting they may not renew participation in China’s Belt and Highway Initiative.
Following Trump’s fees, Panama additionally introduced an audit into the corporate.
CK Hutchison Holdings is one in all Hong Kong’s largest conglomerates, spanning finance, retail, infrastructure, telecoms and logistics.
