Hong Kong company denies that it failed to pay Panama under a contract to operate its canal ports

A Hong Kong-owned port operator at the center of growing U.S.-China tensions has denied allegations that it owes $1.2 billion to the Panamanian government. The Panama Ports Company (PPC), a subsidiary of a major Hong Kong conglomerate, issued a strong response after Panama’s comptroller authority reported alleged irregularities in the renewal of a 25-year concession for port operations along the Panama Canal.

The accusations surfaced on the same day U.S. Defense Secretary Pete Hegseth arrived in Panama for a security conference, further drawing international attention to the matter.

In a statement on Wednesday, PPC rejected the claims, stating it had invested over $1.69 billion since 1997—well above the $50 million required under the original concession and exceeding an additional $1 billion agreed upon in a later addendum. The company added that its investments were audited and verified by Panama’s comptroller general in 2020.

PPC argued that any assessment of its financial obligations must consider the legal amendments made to the original contract, which were lawfully executed and approved. It said any claim to the contrary misrepresents its legal relationship with the state and contradicts past actions by Panamanian authorities.