Central America

Panama may cancel Chinese port contract as Trump threatens to ‘retake’ canal

Panama’s Attorney General’s Office has recommended annulling the 1997 concession granted to a Chinese company to operate two key ports at the entrances of the Panama Canal, citing constitutional violations. The move comes as U.S. President Donald Trump threatens to “retake” the waterway, claiming it is under Beijing’s control.

The request was made by Panama’s Chief Prosecutor, Luis Carlos Gómez, to the Supreme Court, which is currently reviewing two legal challenges against the concession contract awarded to Panama Ports Company, a subsidiary of Hong Kong-based Hutchison Holdings.

At the same time, the company is facing an audit by Panama’s Comptroller’s Office to determine whether it has fulfilled its financial obligations to the government.

According to Gómez, the contract is “unconstitutional”, and he has urged the court to invalidate it. In a document obtained by AFP, he argues that the agreement violates 15 articles of the Panamanian Constitution, as it “improperly transferred exclusive state rights, impacting social and public interests.”

Additionally, Gómez claims that the contract undermines free competition, grants unjustified tax exemptions, and that the automatic 25-year renewal in 2021 was agreed upon under unfair conditions for the public interest.

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The lawsuits seek to void the contract that allows Panama Ports Company to operate the Balboa and Cristóbal ports, located at the Pacific and Atlantic entrances of the canal, respectively. The plaintiffs argue that the company has evaded taxes and received illegal benefits in violation of the Constitution.

The legal battle unfolds as Trump raises concerns over China’s influence in the canal, which the U.S. built and operated until its handover to Panama in 1999. Trump has hinted at taking back control of the waterway, despite the fact that it is managed by an independent Panamanian authority.

Washington sees the presence of a Chinese company at the canal’s entry points as a national security risk, even though both the U.S. and China are the top users of the strategic trade route. The canal, which handles 5% of global maritime trade, underwent a major expansion in 2016 to accommodate larger vessels.

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Central America

Guatemala President Says Starlink Terminal Found Inside Prison

Guatemalan President Bernardo Arévalo revealed on Tuesday that a Starlink terminal was discovered inside a prison in the country, highlighting corruption and the illegal introduction of advanced communication technology into the penitentiary system.

Arévalo did not specify which prison the device was found in but stressed that Starlink’s ability to connect directly to low-orbit satellites makes it particularly difficult to disrupt, posing a serious security risk.

The disclosure was made during a press conference attended by Interior Minister Marco Antonio Villeda and Defense Minister Henry Sáenz.

On January 6, specialized units of Guatemala’s National Civil Police (PNC), members of the Army and prison security personnel carried out Operation Sentinel at the Renovación 1 Maximum Security Prison for Men, located in Escuintla. According to the Interior Ministry, the operation aimed to reduce criminal activity, prevent illicit acts and stop the trafficking of prohibited items inside the prison.

During the operation, authorities also dismantled businesses operating near several prisons after detecting routers that were allegedly used to redirect internet signals into penitentiary facilities, according to local outlet Emisoras Unidas.

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Tensions escalated further over the weekend of January 17 and 18, when inmates affiliated with gangs staged riots in three prisons. During the unrest, they took prison guards and a psychologist hostage, demanding extra-large beds, air conditioning, transfers to other facilities and access to the internet.

Central America

Guatemala Police Arrest Prison Guard Caught in the Act of Extortion

Guatemala’s National Civil Police (PNC) arrested a suspected extortionist in the act during an operation carried out in the department of Quiché, authorities reported.

According to the police report, the arrest took place in Zone 1 of Santa Cruz del Quiché after officers responded to a citizen complaint. Agents from Precinct 71 identified the suspect as Encarnación “N”, 41, who was serving as a guard in the Guatemalan Penitentiary System.

The suspect was caught while attempting to collect a package simulating an extortion payment totaling 25,000 quetzales. Police intervened at the precise moment the money was being handed over, allowing authorities to document the crime in flagrante delicto.

Following the operation, the detainee was placed at the disposal of the competent courts to face criminal proceedings.

The PNC emphasized that such operations aim to dismantle criminal structures involved in extortion, regardless of whether those implicated are linked to state institutions, and urged the public to continue reporting these crimes through confidential channels.

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Central America

Honduras swears in conservative president Asfura after disputed election

Conservative politician Nasry Asfura assumed the presidency of Honduras on Tuesday with an agenda closely aligned with the United States, a shift that could strain the country’s relationship with China as he seeks to confront the economic and security challenges facing the poorest and most violent nation in Central America.

Asfura’s rise to power, backed by U.S. President Donald Trump, marks the end of four years of left-wing rule and secures Trump another regional ally amid the advance of conservative governments in Chile, Bolivia, Peru, and Argentina.

The 67-year-old former mayor and construction businessman was sworn in during an austere ceremony at the National Congress, following a tightly contested election marred by opposition allegations of fraud and Trump’s threat to cut U.S. aid if his preferred candidate did not prevail.

Grateful for Washington’s support, Asfura—who is of Palestinian descent—traveled to the United States to meet with Secretary of State Marco Rubio, before visiting Israeli Prime Minister Benjamin Netanyahu.

“We need to strengthen relations with our most important trading partner,” Asfura said after being declared the winner of the November 30 election by a narrow margin, following a tense vote count that lasted just over three weeks.