Hong Kongs CK Hutchison vows legal action over unlawful Panama ports seizure
Hong Kong’s CK Hutchison Holdings has vowed to pursue all possible domestic and international legal action to protect its interests, and called Panama’s move to take over its two ports unlawful. The conglomerate, led by the family of Hong Kong tycoon Li Ka-shing, issued the warning in its second statement in a week after the…
The conglomerate, led by the family of Hong Kong tycoon Li Ka-shing, 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 Balboa and Cristobal ports at either end of the Panama Canal.
The move followed a 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.
“The group continues to work with its legal counsel, has reserved all its rights, and intends to take all legal steps properly available to it to protect the group’s interests, including recourse to additional national and international legal proceedings in the matter.”
On Tuesday, CK Hutchison had already condemned what it described as the uninvited takeover of its ports by Panamanian authorities, calling it “the culmination of a campaign” against PPC.
It said government representatives had made direct physical entry into the two ports, telling PPC that the concession “no longer exists” and instructing its staff to follow their orders “under threat of criminal prosecution”.
