Hong Kong-based port operator owes $300M in unpaid fees: Panama

Panama officials say Hong Kong company C.K. Hutchinson, which runs two key ports at both

entrances of the c, owes hundreds of millions of dollars in unpaid fees and failed to get proper

clearance. The nation's top auditor announcing Monday Panama Ports, the Hutchinson subsidiary

operating the ports, did not obtain required clearances after it extended its 25-year contract

with the Panama Maritime Authority in 2021. The auditor also noting the company used tax-exempt

subcontractors to slash the amount it paid Panama and did not share the required 10 percent of

profits with the government. Panama Ports owes the country $300 million, and the auditor says

he intends to file criminal charges with the attorney general and meet with the maritime

authority overseeing the ports. The announcement potentially jeopardizes a nearly $23 billion deal

with U.S. company BlackRock to buy the two ports, as Straight Arrow News reported last month

As noted in the recent Straight Arrow News report BlackRock purchase of the ports is also another point of contention between the United States and China amid a growing trade war between the nations A group of buyers led by BlackRock recently announced the port deal with Hutchinson billionaire founder

as President Donald Trump continues to accuse China of exerting too much authority over the Panama C, an assertion denied by Panama and Beijing

Secretary of State Marco Rubio also previously expressed concerns China could use the ports as a choke point to cut off U.S. trade

President Trump vowed to take back control of the key shipping route and lauded BlackRock's deal, arguing it shows his policies are working

Beijing is reportedly unhappy with the potential agreement, and Chinese antitrust officials say they're reviewing it

China's state administration for market regulations also opened a probe last month

into whether the purchase violates Beijing's anti-monopoly laws. According to the Wall Street Journal, China is also trying to find other potential buyers

should the deal between BlackRock and Hutchinson fail to materialize. For more on this story, download the Straight Arrow News app or go to san.com