Hong Kong’s CK Hutchison, the conglomerate led by the family of tycoon Li Ka-shing, has pledged to pursue its rights through global legal action while condemning Panama’s “confiscatory actions”. This is the group’s second statement in a week, following the Panama Maritime Authority’s takeover of the Balboa and Cristobal ports at either end of the Panama Canal under a presidential decree. The move came after a Supreme Court ruling last month that declared unconstitutional the law approving the concession held by CK Hutchison’s subsidiary, Panama Ports Company.
CK Hutchison Holdings issued the warning in its second statement in a week after the Panama Maritime Authority acted on a presidential decree to take over and operate the Balboa and Cristobal ports at either end of the Panama Canal. “PPC has been advised that the ruling, the executive decree and corresponding actions taken by the Panama state relating to the operations of PPC’s terminals at the two ports are inconsistent with the relevant legal framework and the law that approved the concession contract,” the statement read. “The group continues to work with its legal counsel, has reserved all its rights, and intends to take all legal steps properly available to it to protect the group’s interests, including recourse to additional national and international legal proceedings in the matter.”
On Tuesday, CK Hutchison had already condemned what it described as the uninvited takeover of its ports by Panamanian authorities, calling it “the culmination of a campaign” against PPC. It said government representatives had made direct physical entry into the two ports, telling PPC that the concession “no longer exists” and instructing its staff to follow their orders “under threat of criminal prosecution”.
The Balboa and Cristobal ports are at either end of the Panama Canal, a vital artery for global trade. This development highlights legal challenges faced by Hong Kong-based firms in overseas investments, though CK Hutchison stresses it will protect its interests through legal means.
