Central America
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.”
“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.
Central America
Guatemala Declares Highest Alert in Areas Affected by Fuego Volcano Eruption
Guatemalan authorities declared a red alert, the highest level of danger, on Tuesday in areas affected by the eruption of the Fuego Volcano, located about 35 kilometers from the country’s capital.
The most active volcano in Central America entered an eruptive phase on Monday morning, and its activity intensified overnight with lava emissions and large columns of gas and ash.
No fatalities have been reported, but the volcanic activity forced the evacuation of around 500 people as a precautionary measure.
The National Coordination for Disaster Reduction (Conred) declared a state of emergency in the departments of Sacatepéquez, Chimaltenango and Escuintla, the agency announced through its official X account.
The affected regions are home to approximately 1.6 million people. However, ashfall has so far impacted only about five municipalities.
Despite the increase in the alert level, authorities reopened a road leading to the city of Antigua, the country’s main tourist destination, after evaluating safety conditions in the area.
The Fuego Volcano is one of Guatemala’s most active geological formations and has a history of frequent eruptions, requiring continuous monitoring by national emergency agencies.
Central America
U.S. Defense Secretary to Close Multinational Military Exercises in Panama to Protect Canal
U.S. Secretary of Defense Pete Hegseth will travel to Panama next week to close multinational military exercises involving more than 20 countries aimed at strengthening security measures for the Panama Canal against potential threats, a Panamanian government official announced Monday.
This will mark Hegseth’s second visit to Panama. The U.S. defense chief is expected to arrive on August 13 for the closing ceremony of the military drills, which began this week and have been conducted in the Central American country for more than two decades to support the protection of the interoceanic waterway, according to Panama’s Security Minister Frank Ábrego.
The exercises include participation from the United States, Argentina, Brazil, Chile, Colombia, Mexico, the Netherlands, Peru and the United Kingdom, among other nations.
“The canal is a strategic infrastructure that connects markets and supports global supply chains. Its security and uninterrupted operation are of fundamental importance for Panama, the United States and the international community,” said U.S. Ambassador to Panama Kevin Marino Cabrera.
The drills include maritime training operations, exercises in jungle areas surrounding the canal, as well as virtual simulations focused on cybersecurity and strategic planning.
The Panama Canal, one of the world’s most important trade routes, handles approximately 5% of global maritime commerce, making its security a priority for international trade and logistics networks.
Ábrego emphasized that preparedness and international coordination are essential to maintaining stability.
“The best way to preserve peace and guarantee the continuity of global trade is to be prepared to respond in a coordinated and effective manner to any threat,” the Panamanian official said.
Central America
Prosecutors Accuse Ex-Defense Minister of Undermining Press Freedom in Honduras
Honduras’ Public Prosecutor’s Office on Wednesday filed criminal charges against retired General Roosevelt Hernández, the country’s former defense minister and former chief of the Joint Chiefs of Staff, over his alleged role in actions that prosecutors say undermined press freedom and freedom of expression.
Prosecutors said the case was brought by the Special Prosecutor’s Office for the Protection of Journalists, Social Communicators, Human Rights Defenders and Justice Officials following an investigation into content published between 2025 and 2026 on a digital media platform operated by the Honduran Armed Forces.
According to the investigation, the publications were reported by journalists and the Honduran Journalists Association (CPH), which described them as part of an alleged campaign to discredit members of the press and media organizations.
The case dates back to May 2025, when the CPH filed complaints with national and international organizations after the Armed Forces referred to three journalists as “hitmen” in an article published by FF.AA. Digital. The association argued that the publication endangered the journalists’ safety and constituted an attack on press freedom.
The journalists identified in the publication as “hitmen of the truth” were Rodrigo Wong Arévalo, director of the television news program Abriendo Brecha; Dagoberto Rodríguez, director of Radio Cadena Voces; and Juan Carlos Sierra, president of the Honduran Journalists Association. The article also included photographs of the three journalists and the CPH’s logo.
The Public Prosecutor’s Office said the case file includes formal complaints, pretrial investigative proceedings, a specialized forensic analysis of audiovisual and digital material, and witness testimony gathered during the investigation to determine whether the publications violated freedom of expression and the exercise of journalism.
Authorities emphasized that freedom of the press and freedom of expression are protected under the Honduran Constitution as well as international treaties ratified by the country.
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