China Railway Seventh Group (CRSG) said in a statement sent to the Global Times on Thursday that the strike at its project in Uganda was related to demands for a pay rise, and not because of the reported sexual harassment.

The company’s statement came after a report in German media Deutsche Welle said that CRSG’s road construction project in Uganda was facing disputes, as hundreds of local workers went on a strike to protest against sexual harassment and salary delays.

The Associated Press also cited a female worker in Uganda as saying that she had not been paid for three months because she refused sexual advances from her boss.

But CRSG stressed in its statement that the project strictly abides by local laws. It also noted that the company had never delayed paying its employees; nor were any female employees sexually harassed.

“We have zero tolerance for any kind of violations of laws and regulations, and will treat all misdeeds in accordance with relevant laws,” the statement noted.

An authoritative source told the Global Times that the workers in Uganda went on a strike to ask for a rise in their salaries, and several former female workers claimed they were sexually harassed because they were angry at being fired.