World Economic Forum Founder Klaus Schwab Under Investigation for Alleged Misuse of Funds

The World Economic Forum, which runs an annual gathering of global elites at Davos, Switzerland, has authorized an independent investigation into whistleblower allegations against its recently departed founder and chairman, Klaus Schwab.The forum announced that Mr. Schwab, 87, had stepped down in a statement on Monday that recognized his “outstanding achievements” and his “relentless leadership.” On Tuesday, word of the investigation into alleged financial and ethical misconduct became public.The Wall Street Journal reported that an anonymous letter was sent to the board last week claiming that the Schwab family used forum resources improperly for their own use. That led to an emergency board meeting on Sunday and Mr. Schwab’s decision to depart his role immediately.One reported allegation was that Mr. Schwab had junior employees withdraw thousands of dollars from ATMs to pay for him to have private, in-room massages at hotels. Another claim was that his wife, Hilde Schwab, a one-time forum employee, scheduled “token” meetings paid for by the forum as a way to get the organization to pay for her luxury holiday trips.The letter also claimed that Mr. Schwab had treated female employees incorrectly and allowed sexual harassment to go unpunished in the organization. Similar claims had been investigated last year but the organization declared them unfounded.On Wednesday the Forum confirmed that the investigation was underway in a statement to press outlets, but said the allegations remained “unproven.”A spokesperson for Mr. Schwab told the Journal that the allegations were false and the family plans to file a lawsuit against the people behind the anonymous letter.Mr. Schwab created the World Economic Forum 55 years ago to bring together world leaders to exchange insights and foster collaboration. It hosts the annual Davos conference that brings top business leaders, politicians, and celebrities together in the Swiss ski resort town. President Trump delivered remarks to this year’s event via teleconference.Mr. Schwab had already planned to retire but the investigation hastened his exit.The Forum’s board, which includes Vice President Gore and the European Central Bank’s president, Christine Lagarde, unanimously appointed its vice chairman, Peter Brabeck-Letmathe, as the interim chairman as a search for a permanent chairman gets underway.

World Economic Forum Founder Klaus Schwab Under Investigation for Alleged Misuse of Funds

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