- Panamanian prosecutors search Panama Ports Company offices.
- Probe cites possible crime; details undisclosed.
- Panama seized Balboa, Cristobal terminals from CK Hutchison.
- $23 billion BlackRock-led port deal remains in limbo.
Panamanian investigators carried documents out of three offices belonging to the Panama Ports Company (PPC) the local subsidiary of Hong Kong conglomerate CK Hutchison on Thursday, escalating a geopolitical standoff over control of two strategic terminals at either end of the Panama Canal.
The searches were confirmed by a source familiar with the operation and by public prosecutor Azael Samaniego of the anti-corruption office. Personnel from the Public Prosecutor's Office, the Panama Maritime Authority (AMP) and the National Directorate of Judicial Investigation (DIJ) participated. CK Hutchison did not immediately respond to requests for comment.
Anti-Corruption Prosecutor Cites Possible Crime; Scope of Inquiry Undisclosed
Television station TVN broadcast footage of about a dozen officials, some wearing DIJ-emblazoned vests, in the underground parking lot of an Albrook office in Panama City. Samaniego told local media his office had information pointing to the possible commission of a crime but declined to specify the offence, saying the investigation was at an early stage.
A source familiar with the operation confirmed the raid was not related to the government's separate decision to annul CK Hutchison's concession contracts. The person declined to be identified as the information had not yet been made public. PPC and Panamanian law enforcement agencies did not respond to requests for comment.
Ports Seized, Handed to Maersk and MSC; Mulino Denies Arbitrary Action
The searches came days after Panama's Maritime Authority physically seized the Balboa and Cristobal terminals from PPC on February 23, following a Supreme Court ruling that its concession held since 1997 was unconstitutional. Panama's government awarded temporary operational control of both ports to Maersk's APM Terminals and Mediterranean Shipping Company (MSC).
President José Raúl Mulino denied the takeover was arbitrary, saying he held multiple meetings with CK Hutchison executives last year seeking resolution but was met with what he described as an intransigent stance. CK Hutchison has called the annulment unlawful and said it is weighing legal action.
$23 Billion BlackRock Deal in Limbo; US-China Rivalry at the Canal's Core
The dispute has placed the Panama Canal which carries approximately 5 per cent of global maritime trade at the centre of intensifying US-China rivalry. President Donald Trump declared he wanted to reclaim the canal to curb Chinese influence, while Beijing accused Panama of bowing to American pressure.
CK Hutchison had agreed to a $23 billion sale of port assets worldwide, including the Panamanian terminals, to a consortium led by BlackRock and MSC welcomed by Trump but opposed by Beijing, which pressured Chinese state enterprises not to participate. The deal remains in limbo. CK Hutchison shares fell 2.1 per cent in Hong Kong on Friday.
Panama's government has said it plans to launch an international tender for the concessions once the legal process concludes. Bank of America Global Research estimated Balboa and Cristobal together generate between $300 million and $350 million in annual revenue for PPC.
CK Hutchison has separately alleged that Panamanian authorities threatened its employees with criminal prosecution following the port seizure, an accusation Panama's government categorically denied. Trade analysts and maritime investors have warned that a prolonged standoff risks disrupting container shipping schedules along one of the world's most critical trade chokepoints.
