Financial Strains at the Fishermen’s and Trappers’ Organisation
The Fishermen’s and Trappers’ Organisation, known as KNAPK, is facing a significant financial crisis. With around 1,800 members, the organization is struggling to maintain its operational stability; member contributions are proving insufficient to cover expenses.
After enduring four challenging financial years, KNAPK’s situation has grown increasingly precarious. The organization has reported significant deficits, dwindling liquidity, and a troubling decline in equity. From 2021 to 2024, KNAPK’s cumulative deficit has reached a staggering DKK 4.9 million.
In 2024 alone, the organization recorded a deficit of DKK 705,000, an improvement from the DKK 1.1 million shortfall seen the previous year, although this marks a stark contrast to a profit of DKK 1 million in 2020. These figures can be drawn from the annual accounts and draft reports for the years 2020 through 2024, which have come to the attention of Sermitsiaq.
Dwindling Cash Reserves
The organization’s financial woes are underscored by a dramatic reduction in cash reserves. In 2020, KNAPK boasted DKK 2.6 million in its coffers, a figure that has plummeted to just DKK 46,000 by 2024. Compounding these issues, the organization also carries a tax debt of DKK 265,000, as reflected in its financial documents.
Equity has similarly suffered; it decreased from DKK 5.7 million in 2020 to a mere DKK 808,000 in 2024. Such numbers highlight a disheartening trend for an organization already grappling with financial instability. As one insider from the fishing industry expressed, “The ongoing negative operation paints a worrying picture of the organisation’s financial health and raises serious doubts about its future sustainability.”
Internal Debt Concerns
Adding to its troubles, KNAPK faces substantial operational costs, with annual labor expenses for its five employees reaching approximately DKK 3.5 million. Moreover, by the end of 2024, the organization had accrued a debt of about DKK 1.5 million to its own property company. Such an internal debt situation raises questions about compliance with regulations regarding shareholder loans, exposing the board potentially to legal scrutiny.
Despite these challenges, KNAPK has not publicly released its accounts and has declined to share its 2024 financial statements with Sermitsiaq.
Audit Warnings
Concerns regarding KNAPK’s viability have not gone unnoticed. The auditors have issued warnings, raising questions about the organization’s ability to continue functioning—a situation referred to as whether KNAPK can be classified as a “going concern.” The organization has been plagued by deficits for several years, which are causing alarm within the auditing community.
In response, KNAPK’s management has embarked on developing a recovery plan aimed at stabilizing the organization’s financial footing and ensuring its ongoing operations. However, this is not the first time such measures have been reported; similar efforts were noted in 2023.
Loss of Expected Revenue
The financial downturn from 2021 to 2024 can be attributed, in part, to a lack of contributions from salmon funds managed by the NASF (North Atlantic Salmon Fund) and ASF (Atlantic Salmon Federation). In an internal letter dated early November of this year, KNAPK Director Vittus Qujaukitsoq explained that the organization’s claim for a DKK 9.5 million payment from these funds had been denied by the court in Greenland.
At the crux of the case was an agreement established in 2018, which dictated that these organizations would periodically provide funding to support Greenlandic fishermen, in exchange for commitments to mitigate fishing pressures on salmon stocks. The court’s ruling signifies that no financial obligation exists from the NASF and ASF to KNAPK, further complicating the organization’s financial landscape.
Regional Impact
In his correspondence to local branches, Qujaukitsoq indicated that KNAPK anticipates another negative financial outcome by the end of 2025. As a result, only a fraction of the expected funds will be dispatched to local branches. Based on projected income for November and December, the board plans to determine the exact percentage of payments to be disbursed, estimating that around 40-50 percent may be possible, contingent on financial conditions.
The loss of the consultancy contract with the Self-Government of Greenland for fishing services, now rebranded as AAPISI, has further exacerbated KNAPK’s financial difficulties. Qujaukitsoq acknowledges that various factors have contributed to the organization’s challenging situation, including the recent transition of this contract.
Budgetary Restraints
Qujaukitsoq notes that administrative expenses at KNAPK’s Nuuk headquarters are already tightly controlled, and further cuts may yield only limited benefits. The board will need to evaluate additional savings measures before the conclusion of 2025.
In a message directed at local branches and members, he emphasized the importance of understanding these financial challenges, stating, “You will receive updates on the percentages of repayments as we approach November 12, 2025.”
The organization finds itself at a critical juncture, facing both the weight of its past decisions and the urgent need for a viable path forward.