Hong Kong firm appeals for legal protection of investors as its Panama Ports contract faces lawsuits
Respect for the rule of law is essential to assure businesses that Panama is a safe place to invest in, Panama Ports Company, under Hong Kong-based CK Hutchison Holdings, said in a statement.
Panama's Comptroller General filed two lawsuits on Wednesday, seeking to declare unconstitutional a contract that granted the operation of ports at both ends of the canal to the Hong Kong subsidiary, and to nullify its renewal four years ago, saying it was 'abusive' of Panama's interests.
In turn, Panama Ports Company said its operations have had a positive impact, from building world-class ports to creating more than 25,000 direct and indirect jobs and contributing billions of balboas — Panama's currency — to the country's economy.
It said it wants to work with the government in Panama for a better future.
'Regarding the ongoing legal actions, we firmly believe that respect for legal protection and the rule of law are essential in order to provide businesses and investors with the certainty that Panama is a safe country to invest in,' it said.
The company operates the ports of Balboa, in the Pacific, and Cristobal, in the Atlantic, under a concession contract approved in 1997 and renewed in 2021 for 25 more years. CK Hutchison is controlled by the family of Li Ka-shing, the southern Chinese city's richest man.
Panama's comptroller authority in April said that an audit of Panama Ports Company found irregularities in the renewal of the concession. But the company denied allegations that it had failed to pay about $1.2 billion to the Central American country.
Panama President José Raúl Mulino said during his weekly news conference on Thursday that he fully supported the comptroller's case and would await the court's verdict.
'We have all seen what that contract has costed the Panamanian nation over time,' Mulino said without elaborating. He alluded to some sort of public-private partnership for the ports, saying there was a lot of interest from private companies, but that it was in the early stages and provided no details.
CK Hutchison Holdings' initial plan, announced in March, to sell its port assets in dozens of countries to a group that includes the U.S. investment firm BlackRock Inc., also got caught up in tensions between Beijing and Washington.
U.S. President Donald Trump, who has alleged that China interferes with the canal, initially welcomed that plan. However, it apparently angered Beijing and drew a review by Chinese anti-monopoly authorities.
After months of uncertainty, Hutchison said on Monday that it may seek a Chinese investor to join a consortium of buyers, which also includes BlackRock subsidiary Global Infrastructure Partners and Terminal Investment Limited, a subsidiary of the Mediterranean Shipping Company.
The initial deal, valued at nearly $23 billion, including $5 billion in debt, would have given the consortium control over 43 ports in 23 countries, including the two at the Panama Canal.
Panama Ports Company said Friday it would communicate with the Panamanian government 'at the appropriate time,' affirming that it believes engaging with the government 'is vital to discuss the way forward for' the company.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Times
8 minutes ago
- New York Times
Chinese People Are Known to Be Big Savers. Many Are Drowning in Debt.
China is a nation of savers. The Chinese government wants its people to spend more and save less. It also wants them to take on more debt, all for the sake of saving the economy from a four-year slump. The national financial regulator urged banks in March to expand consumer lending and offer more flexible repayment terms. Last month, policymakers promised to provide 'innovative' financial services to boost consumption. Yet many Chinese consumers are wary. An alarming number of them are already defaulting on their debt. From 2021 to 2024, China's total household savings grew 50 percent, as people scared off by a big decline in housing values stuffed their money in banks. During the same period, the number of loans that households could not afford to pay back nearly doubled. For Beijing, expanding access to credit may seem like a quick way to stimulate the economy. But this push for consumers to borrow risks deepening a growing personal debt crisis. Many borrowers, particularly young people, are caught in cycles of debt, driven by poor financial literacy, high youth unemployment and stagnant wages. Those caught in the cycle run the gamut: factory workers, young professionals and gig economy workers. They are people who barely make ends meet while living in fear of default, calls from debt collectors and an overwhelming sense of shame. Want all of The Times? Subscribe.
New York Post
9 minutes ago
- New York Post
DHS Secretary Kristi Noem unveils plans for new migrant detention space in Indiana: ‘The Speedway Slammer'
The Trump administration is collaborating with Indiana to expand capacity at a state correctional facility in order to hold illegal migrants, Homeland Security Secretary Kristi Noem announced Tuesday – dubbing the new wing of the prison, 'The Speedway Slammer.' 'Today, we're announcing a new partnership with the state of Indiana to expand detention bed space by 1,000 beds,' Noem wrote on X. 'Thanks to [Indiana Gov. Mike Braun] for his partnership to help remove the worst of the worst out of our country.' 'If you are in America illegally, you could find yourself in Indiana's Speedway Slammer.' Advertisement 3 Noem indicated that Indiana's 'Speedway Slammer' would be opening 'soon.' AP The name is a nod to Indiana's auto racing culture, particularly the famous Indianapolis Motor Speedway, which is located about 75 miles south of the new detention space at the Miami Correctional Facility. Braun, a former Republican US senator, announced on Aug.1 that Indiana would 'fully partner with federal immigration authorities' to assist President Trump carry out mass deportations. Advertisement As part of the partnership, the Indiana Department of Correction would work with Immigration and Customs Enforcement (ICE) to make available up to 1,000 beds at Miami Correctional Facility, near Bunker Hill, Ind., and the Grissom Joint Air Reserve Base, to house migrants slated for deportation, Braun said. Camp Atterbury – operated by the Indiana National Guard – will also be made available for temporary use by DHS to house illegal migrants subject to deportation, according to the governor. 'We are proud to work with President Trump and Secretary Noem as they remove the worst of the worst with this innovative partnership,' Braun said in a statement. 'Indiana is taking a comprehensive and collaborative approach to combating illegal immigration and will continue to lead the way among states,' he added. Advertisement 3 Braun said the facility would house 'the worst of the worst' migrants. Getty Images 3 The state-run Miami Correctional Facility will add 1,000 beds to house detained illegal migrants. Miami Correctional DHS noted the agreement was 'fully funded' by the One Big Beautiful Bill Act Trump signed into law on July 4, which authorized spending for 80,000 new beds for ICE to utilize when detaining and deporting migrants. Indiana's 'Speedway Slammer' follows the opening of Florida's 'Alligator Alcatraz' earlier this summer to assist the Trump administration's deportation efforts. Advertisement Republican Florida Gov. Ron DeSantis opened the swampland facility, located deep in the Everglades and on the site of an old airport, on July 3. The property, outfitted with tent structures to house the illegal migrants, has the capacity for 2,000 detainees but will eventually hold 4,000. The Trump administration began deporting migrants directly from the Alligator Alcatraz airport, which is able to accept commercial-sized aircraft and conduct both day and nighttime operations, on July 25.
New York Post
39 minutes ago
- New York Post
Sen. Adam Schiff under federal criminal investigation for alleged mortgage fraud violations
Sen. Adam Schiff, D-Calif., is under criminal investigation for mortgage fraud, a Trump administration source told Fox News. Fox News host Laura Ingraham broke the news on Tuesday night on 'The Ingraham Angle,' saying the source said a criminal investigation is being conducted by the US Attorney's Office in Maryland on possible charges involving mortgage fraud. The investigation comes a month after a story broke about the Federal Housing Finance Agency (FHFA) sending a criminal referral to the Department of Justice (DOJ) alleging that Schiff, in multiple instances, falsified bank documents and property records to acquire more favorable loan terms. In a 2011 affidavit signed by the then-California congressman, Schiff certified that a property in Montgomery County, Maryland, is his primary residence. Schiff also owns a condominium in Burbank, California, which he has also claimed as his primary residence as recently as 2023, during his campaign for Senate. Schiff's office did not immediately respond to Fox News Digital's request for comment on the matter. The director of the UFHFA sent a letter to Attorney General Pam Bondi and Deputy Attorney General Todd Blanche in May citing alleged misconduct by Schiff. 'Based on media reports, Mr. Adam B. Schiff has, in multiple instances, falsified bank documents and property records to acquire more favorable loan terms, impacting payments from 2003-2019 for a Potomac, Maryland-based property,' FHFA Director William Pulte wrote in the letter. 3 A Trump administration source reported to Fox News that Sen. Adam Schiff is now being criminally investigated for mortgage fraud. Getty Images 'As regulator of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, we take very seriously allegations of mortgage fraud or other criminal activity. Such misconduct jeopardizes the safety and soundness of FHFA's regulated entities and the security and stability of the U.S. mortgage market.' Pulte later received a memo from the Fannie Mae financial crimes investigations concluding that Schiff allegedly engaged in 'a sustained pattern of possible occupancy misrepresentation' on five Fannie Mae loans, Fox News has learned. Schiff and his wife purchased a home in Potomac, Maryland, in 2003 for $870,000, according to the letter. They entered into a Fannie Mae-backed mortgage agreement for $610,000 at a rate of 5.625% over a term of 30 years, asserting the property would be their primary and principal residence. The letter said they reaffirmed that the Maryland home was their primary residence in mortgage refinancing filings in 2009, 2011, 2012 and 2013, despite Schiff being an elected official representing the state of California at the same time. 3 A letter was sent to Attorney General Pam Bondi, which details the alleged misconduct by Schiff. REUTERS Fox News obtained a copy of the 2011 affidavit showing Schiff signed certifying that the Maryland house is his primary residence. Pulte said Schiff and his wife did not list the Maryland home as their secondary residence until 2020. Over the same time frame, Schiff took a homeowner's tax exemption on a condo that he owns in Burbank, California, also claiming that home as his primary residence for a $7,000 reduction off of the 1% property tax, Pulte wrote, citing media reports. In 2023, the letter notes, a spokesperson for Schiff asserted that, 'Adam's primary residence is Burbank, California, and will remain so when he wins the Senate seat.' The federal housing official wrote that he believes Schiff's alleged misconduct could be violations of federal criminal codes banning wire fraud, mail fraud, bank fraud and false statements to financial institutions. 3 Federal Housing Finance Agency (FHFA) director William Pulte wrote in the letter that the California senator 'falsified bank documents and property records to acquire more favorable loan terms.' Getty Images Schiff 'appears to have falsified records in order to receive favorable loan terms, and also appears to have been aware of the financial benefits of a primary residence mortgage when compared to a secondary residence mortgage,' Pulte wrote. According to the letter, a spokesperson for Schiff in 2023 told CNN that, 'Adam's California and Maryland addresses have been listed as primary residences for loan purposes because they are both occupied throughout the year and to distinguish them from a vacation property.' Last year, the letter notes, a federal jury convicted Marilyn Mosby of making false statements on a mortgage application for a Florida condominium when she was the Baltimore City state's attorney. Fox News Digital's Danielle Wallace contributed to this report.
