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Audit Exposes Major Breaches in Panama Canal Port Concession, $300 Million Owed to State

The Comptroller General of Panama, Anel Flores, stated on Monday that the audit initiated last January on the Chinese company CK Hutchison’s subsidiary, which operates two ports around the Panama Canal, has revealed a series of breaches of contract, a multi-million dollar debt with the State, and irregularities in the automatic renewal of the concession.

“More than 300 million (dollars) are owed to us due to breaches in the contract,” Flores said, referring to Panama Ports Company (PPC), which operates the Balboa and Cristóbal ports located at the Pacific and Atlantic entrances of the Canal, respectively.

PPC has managed Balboa and Cristóbal, two of the five ports around the Canal, since 1997, when it was granted a 25-year concession contract that was automatically extended for another 25 years in June 2021, amid accusations of alleged corruption and unfavorable conditions for the Panamanian State, which holds a 10% stake.

In a press conference surrounded by auditors, the comptroller made a lengthy list of the unfavorable results for the Panamanian State from a modification to the concession conditions made in 2002, during the government of Mireya Moscoso (1999-2004).

These changes, which among other things eliminated a 22 million-dollar annual fee to the treasury, left the State with a fee based on container entries and included a series of tax exemptions, allowing the treasury to lose “about 1.2 billion dollars over two decades, at a rate of 55 million dollars per year.”

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“This situation is not the company’s fault,” Flores said, “but rather the fault of some ‘bad Panamanians’ who negotiated the concession contract very poorly.”

The automatic renewal of the PPC concession approved by the Board of Directors of the Panama Maritime Authority (AMP) “did not meet all the legal requirements and also lacks the endorsement of the General Comptroller’s Office,” something the law mandates, Flores emphasized.

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Central America

First woman elected president in the Americas, Violeta Chamorro, dead at 95

Violeta Barrios de Chamorro, former president of Nicaragua and the first woman in the Americas to be democratically elected head of state, passed away this Saturday in Costa Rica at the age of 95. A pivotal figure in Nicaragua’s transition to democracy, Chamorro achieved a historic victory over Sandinista leader Daniel Ortega in the 1990 elections, heading a broad opposition coalition.

The Chamorro Barrios family confirmed her death in a statement:
“Our mother, Violeta Barrios de Chamorro, former president of Nicaragua, passed away today, June 14, 2025, at 2:21 a.m. (08:21 GMT) in San José, Costa Rica, at the age of 95, after a long illness.”

“Doña Violeta died peacefully, surrounded by the love and affection of her children and the extraordinary care of those who looked after her. She is now in the peace of the Lord,” her children Pedro Joaquín, Claudia Lucía, Cristiana, and Carlos Fernando Chamorro Barrios wrote.

Chamorro’s victory in 1990 marked a significant turning point in Central American politics, ending more than a decade of Sandinista rule and initiating a fragile but hopeful democratic chapter in Nicaragua’s history.

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Central America

Nicaraguan exile coalition urges Costa Rica to receive U.S. deportees fleeing Ortega regime

The Coalition of Nicaraguans in Exile urged Costa Rican President Rodrigo Chaves on Sunday to receive opponents and critics of the Ortega-Murillo regime currently residing in the United States who may be deported by the administration of Donald Trump.

“We appeal to you, Mr. President, to kindly consider, as an act of humanity and in accordance with the principles of international refugee law, the reopening of entry and temporary reception pathways for Nicaraguan citizens deported from the United States,” the coalition stated in a letter addressed to Chaves.

They specifically requested the reopening of entry for those Nicaraguans who had previously sought asylum or refugee status in Costa Rica and who express a well-founded fear for their lives and personal safety if returned to Nicaragua.

The organization, which identifies itself as committed to defending and promoting the human rights of Nicaraguans “forced into exile by the repression of the Sandinista dictatorship,” expressed its appeal with “urgency and deep concern.”

In the letter, the coalition emphasized the dramatic situation faced by thousands of Nicaraguans who fled political persecution under Daniel Ortega’s regime and are now at risk of deportation from the United States.

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Central America

Panama begins reverse migration by sea for 109 stranded migrants

Panamanian authorities have transported a group of 109 migrants of various nationalities by sea to La Miel, a Caribbean town on the country’s border with Colombia, to continue their return journey to South America. The move comes after the migrants failed to settle in the United States, following stricter immigration policies implemented under the administration of former President Donald Trump.

The National Migration Service (SNM) of Panama announced in a statement on Tuesday that the transfer was carried out from the Caribbean port of Colón using a vessel from Panama’s National Aeronaval Service (Senan). The operation was part of the country’s so-called “reverse flow” initiative, aimed at facilitating the safe return of migrants.

The official report noted that the group included migrants from nine different nationalities, with 75 adults and 34 minors on board. Authorities emphasized the “inter-institutional commitment to safe and humanitarian reverse migration.”

A source familiar with the process, speaking anonymously to EFE, confirmed that the vessel departed on Monday. Many of the migrants had opted into the reverse flow program after arriving at the Temporary Attention Center for Migrants (CATEM) in Costa Rica, where coordination was made with Panamanian authorities for their return.

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