Panama local media reported on Thursday (February 26th) that Panamanian officials carried out a search at the offices related to Panama Ports Company, a subsidiary of Hong Kong-based CK Hutchison Group.
The TV station TVN broadcasted footage of the operation, showing about a dozen individuals participating, some wearing vests with the abbreviation of Panama’s investigative police (DIJ). The station reported that they were in an underground parking lot in the upscale residential area of Albrook in Panama City.
The footage depicted individuals loading cardboard boxes into the trunk of a police car.
Both CK Hutchison Group and Panamanian authorities did not immediately respond to requests for comments from Reuters.
The report did not disclose the identified location of the operation, and Reuters was unable to independently verify the report.
A judicial official interviewed by the local TV station confirmed the search operation but did not disclose the name of the company being investigated or any items found.
Recently, the Panama Supreme Court ruled that the contract operated by CK Hutchison at the entrance port of the Panama Canal was unconstitutional, leading the Panamanian government to declare these contracts void.
CK Hutchison stated that they believed the ruling was unlawful and are considering legal action.
Previously, US President Trump pressured Panama to restrict the influence of China over the Panama Canal. US Secretary of State Pompeo supported the decision of the Panamanian court.
CK Hutchison announced that Panamanian authorities took over the management of their wharfs at Balboa and Cristobal ports on February 23rd and terminated the concession agreement.
In a voluntary statement released by the company, they mentioned that in accordance with the Panama Supreme Court’s ruling published on February 23rd in the official gazette, an administrative order instructed the Panamanian government to take control of all assets of their subsidiary, Panama Ports Company (PPC). Representatives of the Panamanian government entered the ports and assumed administrative and operational control. PPC ceased all operations at both ports that day.
The Chinese Hong Kong and Macao Affairs Office called Panama’s decision “absurd” and warned that Panama would pay a “heavy political and economic price” for it.
Panamanian President Jose Raul Mulino responded, strongly opposing Chinese threats towards Panama and stating that Panama is a country that upholds the rule of law and respects judicial decisions independent from the central government.
The Panama Canal handles approximately 5% of global maritime trade.