Panama auditor targets ex-port regulators and Hong Kong firm’s executives in canal probe

Panama's comptroller general announced on Friday that his office would provide prosecutors with additional audit material concerning former executives of CK Hutchison's local subsidiary. This development is part of a criminal investigation into the Hong Kong conglomerate's previously annulled Panama Canal ports concession. The request encompasses information related to Panama Ports Company (PPC), which operated the Balboa and Cristobal terminals at the canal's ends until February.

Additionally, the material covers former board members of the Panama Maritime Authority, the regulator responsible for overseeing the concession. The comptroller general urged prosecutors to hold these individuals accountable for modifications made to the concession terms, which he claimed disadvantaged the country. However, he refrained from naming anyone or announcing charges, stating that the prosecutor's office had not made any progress on potential corruption at PPC over the past year.

The investigation was initiated by prosecutors in April of the previous year, following the comptroller general's presentation of an audit alleging that Panama received US$483 million from the concession, while approximately US$1.34 billion was owed under the original contract. The comptroller general also accused PPC of utilizing outsourced "satellite" companies from 2015 to siphon profits from the operator, a claim that the company denied.