Panama’s Canal Authority slapped a fine on Thursday of up to US$1 million on the owners of a North Korean ship seized in July for smuggling Cuban weapons under 10,000 tons of sugar.
The fine was for failing to accurately disclose the cargo and putting the canal and canal workers at risk, said Jorge Quijano, head of the semi-autonomous Panama Canal Authority.
The amount is “a proposed sanction of up to $1 million, and I say ‘up to’ because there is a process in which clarifications can be made and they can defend their point of view,” Quijano said.
The ship, the Chong Chon Gang, and its 35-member crew remain in Panama, despite a request from Pyongyang seeking a “diplomatic manner” to resolve the situation.
The owners of the ship must also pay a $650,000 bond before it is allowed to leave the canal, Quijano said.
Panamanian investigators detained the vessel in July near the Atlantic entrance to the canal after receiving a tip it was carrying drugs.