Panama raids CK Hutchison subsidiary office, days after taking over canal ports

Panamanian authorities have reportedly raided the office of a subsidiary of Hong Kong conglomerate CK Hutchison Holdings that previously operated two ports at either end of the country’s canal, days after the terminals were taken over against the company’s will.

According to Panamanian media on Thursday, local authorities had searched the office of the Panama Ports Company, which operated the Balboa and Cristobal ports until this week. Boxes of documents were seen being taken away during the raid.

The operation came on the same day that CK Hutchison, led by the family of Hong Kong tycoon Li Ka-shing, vowed to pursue all possible legal action, both domestically and internationally, to protect its interests, calling Panama’s move to take over its two ports unlawful.

The conglomerate issued the warning in its second statement in a week after the Panama Maritime Authority acted on a presidential decree allowing it to take over and operate the two ports at either end of the Panama Canal.

The move followed a Panamanian Supreme Court ruling last month that declared unconstitutional the law approving the concession held by CK Hutchison’s subsidiary, Panama Ports Company (PPC).

“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.