Hong Kong Firm Did Not Uphold Panama Canal Ports Contract: Panama Audit

Panama Ports, a subsidiary of logistics giant CK Hutchison, won the concession to operate Balboa port on the Pacific side of the canal and Cristobal port on the Atlantic side in 1997 (Credit: AFP)

The Hong Kong firm in charge of two ports at either end of the Panama Canal -- which sparked US President Donald Trump's threats to seize the waterway -- has flouted the terms of its contract, according to Panamanian audit results released Monday.

The audit found "many breaches" of the concession awarded to a subsidiary of logistics giant CK Hutchison to operate the two ports, and concluded that Panama did not receive $1.2 billion it was owed under the contract.