A deal to transfer control over major Panama ports from China-tied CK Hutchison to American firm BlackRock hit roadblocks after Panama’s top auditor accused the Hong Kong business of wrongdoings and owing hundreds of millions of dollars in unpaid fees.

Panama has launched a formal investigation into a controversial port contract awarded to CK Hutchison, a Hong Kong-based conglomerate, over the operation of two major ports in the country. Attorney General Luis

Panama Ports Co., the entity run by Hutchison Port Holdings, didn’t receive required approvals from the comptroller’s office for a contract extension in 2021 and also used a series of tax-exempt subcontractors to lower the amount it pays to the government, Comptroller General Anel Flores told reporters April 7 following an audit.