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The inspection comes amid Trump's accusations that Panama allowed China to interfere in the operation of the canal.
Panama has begun an audit of a China-linked company that controls two ports adjacent to the Panama Canal, amid threats from US President Donald Trump to seize the waterway.
This is reported by Bloomberg.
The comptroller's office on Monday, Jan. 20, sent a team of auditors to the local offices of Panama Ports Co., a subsidiary of Hong Kong billionaire Li Ka-shing's CK Hutchison Holdings Ltd., to launch an investigation.
The review comes amid Trump's accusations that Panama has allowed China to interfere in the canal's operation. In his inaugural address on Monday, Trump reiterated his promise that his administration would bring the canal back.
Panama’s Comptroller General, Anel Bolo Flores, said this week that the inspection would focus on compliance with the terms of the 25-year concession granted to the company. Panama initially granted the concession in 1998, and the Panamanian Maritime Authority has authorized its extension in 2021.
According to him, ports now handle significantly more cargo than in 1998, and the concession does not provide a large enough share of revenue for the government.
The Panamanian government has repeatedly denied any Chinese presence in the canal, but Trump has yet to provide any evidence to refute this.
