By South China Morning Post | Created at 2025-04-05 15:51:13 | Updated at 2025-04-06 06:31:45
14 hours ago
A decades-old concession giving Hong Kong-based CK Hutchison Holdings control of ports at either end of the Panama Canal carries deep constitutional consequences for the country’s sovereignty, two lawyers challenging the contract have told the Post.
The action, filed by lawyers Norman Castro and Julio Macias with the country’s Supreme Court, targets the law that approved the 1997 concession contract between the Panamanian state and the Panama Ports Company, a subsidiary of CK Hutchison.
The lawyers alleged that the agreement violated fundamental articles of Panama’s constitution, undermining the country’s sovereignty, public interest and economic fairness.
“We are asking the court to declare the law unconstitutional in its entirety because it grants privileges to a private company that should only belong to the Panamanian state,” Castro said on Friday in an exclusive interview.
Their arguments, laid out both in their petition and subsequent written submissions to the court, centre on claims that the concession improperly transferred sovereign powers to a private entity, failed to follow public bidding procedures required under the constitution and granted tax exemptions without proper legislative approval.
Under the concession agreement, CK Hutchison was granted the authority to restrict future port development in designated areas known as Diablo and Isla Telfers, and retained veto power over infrastructure projects in the surrounding region.
The lawyers contended that such powers should, under Panamanian law, belong exclusively to the state.
