A subsidiary of a Hong Kong conglomerate, which is embroiled in U.S.-China tensions over its Panama Canal port assets has denied allegations that it had failed to pay about $1.2 billion to the Central

The audit found “many breaches” of the concession awarded to a subsidiary of logistics giant CK Hutchison to operate the two ports and said Panama did not receive US$1.2 billion (S$1.6 billion) it was owed under the contract.

Auditors in Panama have reported that the Hong Kong-based owner of key Panama Canal ports has violated the terms of its contract. Comptroller-General Anel Flores announced on Monday that the audit had found “many breaches” of the concession awarded to Hong Kong-based logistics giant CK Hutchison to operate the Balboa and Cristobal ports,

A company controlled by Hong Kong-based CK Hutchison has invested $1.7 billion in two ports near the Panama Canal, it said on Wednesday, surpassing the amount required under its contract, which is being audited by Panamanian authorities.

CK Hutchison Holdings Ltd rejected accusations it failed to pay about 1.2 billion balboas ($1.2 billion) to the Panamanian state over the concession contract to run the two key ports in the Central American country.

Panama's attorney general's office has opened an investigation on possible damages caused by a contract granted to Hong Kong-based CK Hutchison for the operation of two ports in the Central American country,