Panama’s chief auditor expressed grave concerns over the proposed acquisition of two crucial Panama Canal ports by BlackRock Inc. ( BLK ) .

What Happened: The Hong Kong-based company, CK Hutchison, is suspected of being in debt for hundreds of millions in unpaid fees and did not secure the necessary clearances for the ports. This could potentially disrupt BlackRock’s plans to acquire the ports as part of a $22.8 billion deal.

Panama's Comptroller General, Anel Flores, accused Panama Ports, operated by Hutchison, of extending its 2021 contract with the Panama Maritime Authority without required clearances. He also stated the company used tax-exempt subcontractors to lower payments to the government and failed to share 10% of its profits as obligated, reported the South China Morning Post.

Panama's comptroller general accused CK Hutchison of depriving the country of over $1.3 billion through a decades-old port concession that was “negotiated against the Republic.” Flores plans to file criminal charges and inform the Panama Maritime Authority, which may consider revoking the concessions.

The acquisition has become a point of tension between the U.S. and China amid an escalating trade war. Last month, a consortium led by BlackRock ( BLK ) revealed the port deal with Hutchison's founder, Li Ka-shing, shortly after President Donald Trump accused China of exerting excessive control over the Panama Canal.

However, the deal has encountered pushback from Beijing, with state-affiliated media portraying it as a betrayal of the Chinese public. China’s antitrust officials have announced a review of the acquisition, and alternative buyers are being sought if the deal does not materialize.

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Why It Matters: BlackRock’s CEO, Larry Fink, acknowledged on Monday that the escalating U.S.-China tariff rift could complicate the deal. He added that the ports in question account for about 4% of the total value of a deal that will grant the U.S. firm access to 43 ports across 23 countries. The entire deal will be reviewed as a single transaction. According to Fink, the regulatory review of the deal could take up to nine additional months.

Following the announcement of the port deal, Beijing ordered state-owned companies to halt new partnerships with companies associated with Li Ka-shing, Hutchison’s founder. This move signaled China’s scrutiny of the Hong Kong tycoon’s global business empire.

While Panama claimed its investigation was launched independently to safeguard its financial interests, a source told SCMP that pressure from Trump’s administration also influenced the government’s decision.

The deal also coincided with escalating trade tensions between the U.S. and China. China’s Commerce Ministry “resolutely opposed” U.S. President Donald Trump’s threat to impose additional 50% duties on Chinese imports and vowed to take countermeasures to protect its interests.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.