Panama’s Supreme Court has thrown CK Hutchison’s flagship Panama Ports Company (PPC) concession into limbo, ruling the Hong Kong group’s contract to operate terminals at either end of the Panama Canal unconstitutional.

In a brief statement late Thursday, the court struck down the 25‑year extension granted to PPC in 2021, following an audit by Panama’s comptroller that alleged serious irregularities in both the original 1997 contract and its renewal.

Comptroller Anel Flores said his office had identified unpaid sums, accounting errors and even a “ghost” concession operating inside the ports since 2015. The audit estimated revenue losses to the state of about $300m since the extension and $1.2bn over the original 25‑year term. Flores also argued the renewal had been granted without the mandatory endorsement of his office. Panama Ports Company has denied the allegations.

The court gave no guidance on what happens next. 

PPC’s Balboa and Cristóbal terminals are critical canal‑adjacent hubs for transhipment and relay services. PPC said in a statement that the court ruling was inconsistent with the legal framework underpinning its operations at Balboa and Cristobal. The company called for coordination with the government to avoid disruption and safeguard the concession, while reserving all legal options.

CK Hutchison has been trying unsuccessfully to sell off its ports division over the past year, something that recent reports suggest might now be done in parcels, not the entire portfolio in one go.

The Trump administration has made limiting Chinese commercial leverage around the canal a stated priority, with US officials repeatedly framing port operations as a national security issue.