A contract held by a Hong Kong company to operate ports at the Panama Canal was found to have violated the Panama constitution and not serve the public interest, reports Reuters. The country’s Supreme Court decision therefore voided the deal made in the 1990s.
The court issued its verdict on Thursday, but it did not formally release its ruling or explain its rationale. Local television station TVN first reported on the decision, which has been confirmed by a court official.
The court said in its decision that the contract held by Panama Ports Company, a subsidiary of Hong Kong’s CK Hutchison violated Panama’s constitution by giving the company exclusive privileges and tax exemptions. The contract also lacked a requirement for environmental impact assessments and said the government had to seek Panama Ports’ approval before granting other concessions, the court said.