By Elida Moreno
PANAMA CITY, March 19 (Reuters) – Panamanian President Jose Raul Mulino on Thursday said accusations by a local unit of Hong Kong’s CK Hutchison over setbacks in an arbitration process for disputed port contracts were “outrageous” and “a lie.”
Panama Ports Company, a CK Hutchison subsidiary, on Monday accused the Panamanian government of missing a March 13 deadline to respond to the proceedings, alleging that government officials sought an extension because they did not have legal representation.
Mulino rejected that claim, saying the government is backed by international counsel.
“That is outrageous and a lie,” he said at an event. “We have appointed international lawyers who are going to defend us.”
In a statement later Thursday, the government accused PPC and its affiliates of refusing to cooperate, concealing information and obstructing a coordinated transition. It described the company’s recent remarks as “fallacious and libelous.”
CK Hutchison, a conglomerate whose holdings span infrastructure and telecommunications, did not immediately reply to a request for comment on the latest remarks from Mulino and his government.
The dispute follows a move by Panama’s government to unwind the concession agreements that gave PPC control of the Balboa and Cristobal ports, following a court ruling that authorities said rendered the contracts unconstitutional.
The action is widely viewed as a result of U.S. pressure to limit Chinese influence over the strategic waterway.
Following the Supreme Court-backed annulment, the government issued 18-month temporary concessions. APM Terminals now manages the Balboa port, while TIL Panama, a unit of Mediterranean Shipping Company (MSC), handles the Cristobal terminal.
(Reporting by Elida Moreno, Writing by Natalia Siniawski, Editing by Iñigo Alexander)
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