Investigators in Panama conducted a search Thursday at offices belonging to a subsidiary of Hong Kong-based conglomerate CK Hutchison, according to someone with knowledge of the operation.
The search at CK Hutchison’s Panama Ports Company (PPC) was not connected to the government’s recent decision to cancel contracts that allowed the company to manage two key port terminals along Panama’s canal system, the source indicated.
The individual requested anonymity since details of the investigation have not been released publicly.
CK Hutchison has not yet provided a response to requests for comment on the matter.
“This is an independent investigation carried out exclusively by the Public Ministry of Panama in the exercise of its legal powers,” Panama’s government stated, though officials did not specifically identify CK Hutchison as the focus of the search.
Trading of CK Hutchison stock dropped 0.9% during early Friday sessions in Hong Kong markets.
Panamanian news outlets first reported the investigation. Local television network TVN broadcast footage showing approximately twelve individuals, several wearing jackets marked with Panama’s investigative police unit (DIJ) insignia, working in an underground garage in Panama City’s upscale Albrook district.
The footage captured personnel placing cardboard containers into a police vehicle.
Building identification was not clear in the broadcast images, and Reuters was unable to confirm the location independently.
A court official speaking on local television verified that a search operation had occurred but would not identify the targeted business or specify what evidence was collected.
Panama’s highest court ruled recently that CK Hutchison’s agreements to manage port facilities at Panama Canal entrances violated the constitution, prompting government officials to void those contracts.
The ruling has created tensions involving both China and the United States, following pressure from former U.S. President Donald Trump for Panama to limit Chinese control over the Panama Canal, which handles approximately 5% of worldwide shipping traffic.
CK Hutchison has characterized the court decision as illegal and indicated it may pursue legal remedies.
