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Edith Lin

Panamanian President Jose Raul Mulino has accused a subsidiary of Hong Kong conglomerate CK Hutchison Holdings of lying about the country’s response to an arbitration initiated by the company over the seizure of two strategic ports.
Mulino’s rebuttal on Thursday was in response to claims several days earlier by the Panama Ports Company (PPC) that his government had failed to file a response to the company’s request for arbitration by the deadline of March 13.
The company filed the request after the country seized control of terminals at the Balboa and Cristobal ports in February.
PPC, a subsidiary of the conglomerate owned by Hong Kong tycoon Li Ka-shing’s family, claimed the government had said it was “not prepared” and would not be able to respond in time because it had not hired any lawyers, “was not familiar with the dispute” and needed time to develop a plan.
Mulino rejected the accusation and said the government was backed by international counsel.
“[The accusation] is outrageous and a lie,” he said. “We have appointed ‌international lawyers who are going to defend us.”
The Panamanian government later issued a statement, accusing PPC and its affiliates of refusing to cooperate, concealing information and obstructing a coordinated transition.
It also described the company’s recent remarks as “fallacious and libellous”.
Panamanian authorities seized the Balboa and Cristobal ports in February, following a ruling by the country’s top court that declared the law approving the concession held by PPC to be unconstitutional.

The company described the seizure of the ports as an “illegal takeover”. PPC has operated the facilities since 1997 under a 25-year concession, renewed in 2021.
The canal, which carries about 5 per cent of global maritime trade, became a geopolitical flashpoint after United States President Donald Trump promised he would “take back” control of the waterway, which he said was under Beijing’s influence.
Speaking at the CK Hutchison results briefing on Thursday, group co-managing director Frank John Sixt said the conglomerate and PPC were pursuing “all available legal remedies” through both national and international proceedings to resolve the dispute over the two Panama Canal ports.
He added they were in discussions with the original consortium members, as well as a significant financial investor and a major strategic investor from China.
Sixt said the conglomerate was continuing to “work vigorously” with its legal advisers and would “provide updates when that is appropriate”.
The port dispute intersected with a separate attempt by CK Hutchison to sell more than 40 ports worldwide in a multibillion-dollar deal with a consortium led by US asset manager BlackRock and MSC.
Chinese regulators at the time signalled that they would scrutinise the transaction, and reports indicated Beijing sought a greater role for state-owned shipping giant Cosco in any arrangement involving the Panama terminals.
Without providing a reason, Cosco announced last week that it would suspend its operations at the Balboa port, prompting Panamanian authorities to publicly urge the shipping giant to reconsider its decision.


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Panama⁠ president accuses CK Hutchison subsidiary of lying about arbitration response

Balboa port was taken over by Panamanian authorities in February. Photo: Reuters

Panamanian President Jose Raul Mulino has rejected the accusation and says the government is backed by international counsel. Photo: AP

CK Hutchison vows to pursue ‘all legal remedies’ over seized Panama ports

Cristobal port was seized by Panamanian authorities in February. Photo: AFP

CK Hutchison anticipates slower global trade growth this year amid geopolitical risks and China-US tensions. Photo: Sam Tsang

CK Hutchison subsidiary slams Panama for missing arbitration deadline

Balboa port was seized by Panamanian authorities in February. Photo: AP

The administrative entrance to the port of Balboa in Panama City, photographed in February this year. Photo: AFP

CK Hutchison escalates legal action over Panama ports seizure

Panamanian police search a Panama Ports Company office. Photo Reuters


Hong Kong tycoon Li Ka-shing’s conglomerate has accused Panamanian authorities of ignoring requests for communication. Photo: Sam Tsang

Panama urges Chinese shipping giant Cosco to resume operations at canal

State-owned Cosco owns one of the world’s largest tanker fleets. Photo: AFP

The Balboa port is a critical terminal at the entrance of the Panama Canal, through which 10 million containers passed last year. Photo: Reuters

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President Jose Raul Mulino slams Panama Ports Company for accusing country of failing to file response to arbitration request


President Jose Raul Mulino slams Panama Ports Company for accusing country of failing to file response to arbitration request.


Panama⁠ president accuses CK Hutchison subsidiary of lying about arbitration response

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}President Jose Raul Mulino slams Panama Ports Company for accusing country of failing to file response to arbitration request

President Jose Raul Mulino slams Panama Ports Company for accusing country of failing to file response to arbitration request