The MYD Inc shipyard in American Samoa says it will have to layoff a quarter of its workers now that the government has cancelled a contract to have it service the MV Sili.
The acting Chief Procurement Officer, Ivy Taufaasau, notified MYD's President, Bob Weihe, last Friday that at the request of the Director of Port Administration, Matagi Ray McMoore, the local company would no longer do work, as had been previously agreed.
The cancellation is reportedly due to a lack of funds for the project.
Mr Weihe says the cancellation is a blow to the local shipyard, which had been gearing up to hire more workers for the MV Sili's repairs.
"This job was pending, it was a big job. Our plan was to do very very well on it, so we didn't schedule any other big jobs coming in, we didn't schedule any other boats for dry docks, so we are going to have a little dry period now and it is very unfortunate that we are going to have to send some people home."