Panama’s Supreme Court cancels Hong Kong operator’s canal port contracts, citing constitutional violations and failure to serve public interest.
PANAMA CITY: Panama’s Supreme Court has ruled that a contract held by a Hong Kong company to operate ports at the Panama Canal violated the constitution.
The court stated the contract failed to “serve the public interest and social welfare.”
It voided the contracts in a decision announced on Thursday, though the full ruling explaining its rationale was not initially released.
The decision was later obtained by local television station TVN, and a court official confirmed its veracity.
Panama Ports Company (PPC), a subsidiary of Hong Kong-based CK Hutchison, has held contracts since the 1990s to operate container terminals at the canal’s Pacific and Atlantic entrances.
The court said the contract violated Panama’s constitution because it gave the company exclusive privileges and tax exemptions unavailable to other competitors.
It also lacked environmental impact assessments and required the government to seek the company’s approval before granting future concessions. – Reuters