CK Hutchison's (0001) unit, Panama Ports Company, stated on Friday that the ruling by Panama's Supreme Court annulling key port contracts held by the subsidiary lacked legal basis.
PPC said it has not yet been notified of such a decision, and the decision is inconsistent with the relevant legal framework and the law that approved the contract which has been the basis for PPC's operations at the ports of Balboa and Cristobal for nearly three decades, based on the referenced statement and assessment by counsel of the referenced proceedings.
This ruling is the latest development in a campaign by the Panamanian State impacting PPC and its investor over more than a year, including a range of surprise actions targeting the Concession and PPC, it added.
Over 28 years of operation, PPC and its investor have invested more than US$1.8 billion (HK$14.1 billion) in infrastructure, technology, and human development, which have generated thousands of direct and indirect jobs and have been determinant in establishing Panama as a globally recognized port and logistics hub, PPC said.
The company noted that the new ruling, based on available information, lacks legal basis and jeopardizes not only PPC and its contract, but also the well-being and stability of thousands of Panamanian families who depend directly and indirectly on port activity, but also the rule of law and legal certainty in the country.
The campaign by the Panamanian State against its own legal and contractual framework, and a diligent concessionaire and investor, continue to undermine the reputation of Panama as a reliable jurisdiction and its position as a globally competitive logistics center.
The firm pointed out that the PPC concession contract was the result of a transparent international bidding process. From that time, PPC has complied with its contractual and legal obligations, including audits conducted by the State, always acting with complete transparency and a full willingness to cooperate.
Due to the campaign affecting PPC and its investors, the company and its investors continue to permanently reserve all rights including recourse to national and international legal proceedings.
PPC and its investors have always sought cooperation with the Panamanian State and reiterate their call for respectful coordination and consultation to avoid disruption and protect the concession that has provided high-quality services for the benefit of Panama and the world, according to the statement.
