CK Hutchison Holdings Ltd rejected accusations it failed to pay about 1.2 billion balboas ($1.2 billion) to the Panamanian state over the concession contract to run the two key ports in the Central American country.

In addition to the lapses in required approvals, the audit found that Panama Ports used a series of tax-exempt subcontractors to lower the amount it pays to the government.

HK's CK Hutchison's deal included selling 2 ports at the Panama Canal, a waterway the US vowed to "take back." Beijing said it would review the transaction.