Panama Audits Chinese Firm Operating Canal Ports Amid Trump’s Threats

The Panamanian government has launched an audit of Panama Ports Company, a subsidiary of Hong Kong-based Hutchison Holdings. This move comes as former U.S. President Donald Trump threatens to retake control of the Panama Canal.

The audit aims to ensure transparency and efficient use of public resources. Max Florez, director of Ports and Auxiliary Maritime Industries at the Panama Maritime Authority (AMP), confirmed the audit’s initiation.

The AMP notified Panama Ports Company of the impending audit by the Comptroller General’s office. Auditors have already arrived at the company to begin their thorough examination.

The audit will focus on verifying compliance with concession agreements between Panama Ports Company and the Panamanian government. It will also check if the company is accurately reporting its income, payments, and contributions to the state.

This scrutiny comes at a crucial time for Panama’s maritime industry. Panama Ports Company operates two key ports at the canal’s entrances: Balboa on the Pacific side and San Cristobal on the Atlantic.

Panama Audits Chinese Firm Operating Canal Ports Amid Trump’s Threats. (Photo Internet reproduction)

The company has been operating under a concession contract since January 1997. In 2021, this contract was extended for another 25 years, despite criticism over the company’s alleged low contributions to Panama’s treasury.

Panama Canal Sovereignty in the Spotlight

Trump’s recent inauguration speech reiterated his intention to take control of the Panama Canal, even by force. He claimed that “China is operating the Panama Canal.”

In response, Panamanian President José Raúl Mulino firmly stated that the canal “is and will remain Panamanian” and denied any foreign interference in its management.

The Panama Canal, built by the United States and opened in 1914, counts the U.S. and China as its two largest users. This audit reflects Panama’s efforts to maintain sovereignty over its strategic assets.

It also addresses concerns about foreign influence and economic benefits. As the audit progresses, its results will be made public upon completion.

In short, this process underscores Panama’s commitment to transparency and its determination to protect its interests in the face of international pressure and scrutiny.