Workers of the Sofoline Interchange project in Kumasi are in a state of uncertainty as management of the Chinese construction firm undertaking the project begins a lay-off due to financial constraints.

China Geo Engineering Corporation has sent over 100 workers home in the last two months because, according to officials, government had failed to pay the company for work done.

Sixty-four workers lost their jobs last month and 49 followed suit just last week, raising anxiety among their colleagues who are still at post.

Leadership of the local Construction and Mining Workers Union says the current situation can be addressed only if government releases funds to pay the contractor.

The Finance Ministry recently announced on-going projects in the road, housing and the energy sectors would be the first to benefit from the Eurobond proceeds.

Despite the announcement, Sofoline Interchange Project which received presidential attention in 2011 is still suffering funding challenges.  

Work on the 11 kilometre, six-lane asphaltic concrete dual carriageway which started in August 2007 was scheduled for completion in 36-months.

A letter dated October 3 and signed by Project Manager, Joselito Castro, to the Director of Urban Roads Department Serves indicated that major works would temporarily be suspended, beginning October 4.

The contractors are worried previous Interim Payment Certificates or IPC 28 and 29 had not been honoured more than 28-days after submission.

“Since 28 days has elapsed and that we haven’t been able to receive payments for IPC28 and IPC29 to date, consequently, there is no positive response to our cash flow situation. We hereby inform you that we shall temporarily suspend major works in Road Section, starting 4th October 2013 due to aforementioned reason,” the letter stated.

Officials warn of total closure if payments on two additional certificates are delayed.

“Based on our past experience, we are very concerned and worried about payment for IPC 30 and 31; if they cannot be paid on time then our cash flow situation will deteriorate to terrible extent”.

Chairman of the local union, Rudolf Assoala who echoed anxiety of workers told Nhyira Fm all is not well with the workers who live in constant fear.

“The workers are not okay. Why they are not okay is that, they don’t know what is going on. So they do come and ask, chairman, what is going on? I say oh, let’s wait and see. I believe that government will pay”.

Meanwhile, management says it will pay redundancy benefits to affected workers.

“Redundancy benefits for the affected workers are being worked out in accordance with Article 8.1.6(i) of the Collective Bargaining Agreement and will be paid to them on 25th October 2013”.