Li Ka-shing’s CK Hutchison Holdings has defended the contract that has allowed it to run two ports at the Panama Canal since 1997, saying the concession was “validly executed and approved by law” and denying it failed to pay more than US$1 billion to the country, as had been claimed in a sweeping financial audit.
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The comments on Wednesday marked the first time the Hong Kong conglomerate had weighed in since revealing a deal to sell its 43 overseas ports. Its subsidiary, the Panama Ports Company (PPC), issued a response to the recent legal challenge filed in Panama and denied a number of accusations.
The deal, announced on March 4, includes the company’s Balboa and Cristobal ports at each end of the vital waterway.
A key argument in the PPC’s defence was that it had made more than US$1.695 billion in investment in the two ports, exceeding the required US$50 million in the original concession contract. It had also contributed another US$1 billion under an addendum the conglomerate and Panama had voluntarily agreed to in 2005.
“We firmly believe that respect for legal certainty gives companies and investors the certainty that Panama is a safe country in which to invest,” the PPC said.
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“Our philosophy of ‘Ports made by Panamanians’ reflects our continuous commitment to the country and its people, being an essential engine within the dynamic national economy and the maritime port sector.