Panama has complained to the UN over US President Donald Trump’s “worrying” threat to seize the Panama Canal, even as it launched an audit of the Hong Kong-linked operator of two ports on the interoceanic waterway.
In a letter addressed to UN Secretary-General Antonio Guterres, the government in Panama City referred to an article of the UN Charter precluding any member from “the threat or use of force” against the territorial integrity or political independence of another.
The missive, distributed to reporters on Tuesday, urges Guterres to refer the matter to the UN Security Council, without asking for a meeting to be convened.
Photo: AFP
Trump, in his inaugural address on Monday, repeated a complaint that China was effectively “operating” the Panama Canal through its growing presence around the waterway, which the US handed over at the end of 1999.
“We didn’t give it to China, we gave it to Panama. And we’re taking it back,” Trump said.
The Panamanian comptroller’s office, which oversees public entities, announced “an exhaustive audit” would be launched “aimed at ensuring the efficient and transparent use of public resources” at Panama Ports Co.
The company, part of Hutchison Ports, a subsidiary of Hong Kong-based conglomerate CK Hutchison Holdings, operates the ports of Balboa and Cristobal on either end of the canal.
The comptroller’s office said the aim was to determine whether Panama Ports was complying with its concession agreements, including adequate reporting of income, payments and contributions to the state.
Hutchison Ports said in a statement that it has “maintained and will continue to maintain a transparent and collaborative relationship” with Panamanian authorities.
“We remain steadfast in our commitment to comply with all laws and regulations, fully exercising our contractual responsibilities,” the firm said.
“Our financial results, audited by an independent external auditor, have been shared annually with our partner, the Panamanian State, ensuring trust and clarity in our management,” it said.
Panama’s President Jose Raul Mulino has denied that any other nation was interfering in the canal, which he said was operated on a principle of neutrality.
“The canal is and will remain Panama’s,” Mulino said.
Trump has been raising pressure for weeks over the canal, through which 40 percent of US container traffic travels.
The Panama Ports concession agreement was extended by 25 years in 2021.
The US is the canal’s main user, followed by China.
Since 2000, the waterway has contributed more than US$30 billion to Panama’s state coffers, including nearly US$2.5 billion in the last fiscal year.
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