The World Economic Forum (WEF) has launched an internal investigation into its founder and longtime chairman, Klaus Schwab, following whistleblower allegations of financial misconduct involving both Schwab and his wife, Hilde.
The claims, which include misuse of Forum funds for personal expenses and questionable workplace practices, surfaced last week in a letter obtained by The Wall Street Journal.
The anonymous whistleblower letter, addressed to the WEF’s board, accused Schwab of using the organization’s financial resources for personal gain without proper oversight.
Among the allegations were claims that Schwab instructed junior employees to withdraw thousands of dollars in cash from ATMs for his personal use.
The letter also alleged Schwab used WEF funds to pay for private massages at hotels.
Hilde Schwab, who previously held a role within the organization, was accused of scheduling what the whistleblower described as “token” meetings—minimal or superficial engagements funded by the WEF—in order to justify expensive personal travel.
A second source familiar with the situation confirmed to The Wall Street Journal that an investigation had been initiated.
The board reportedly convened an emergency meeting over the Easter weekend to address the whistleblower’s claims.
Despite Schwab’s attempts to prevent the probe, including his stated intention to pursue legal action against the whistleblower, the board voted to proceed with an independent review of the allegations.
He had previously announced plans to step down later this year, after more than five decades of leading the organization.
In a statement released through a spokesperson, the Schwabs denied all claims raised in the letter.
The spokesperson said Klaus Schwab plans to file a lawsuit against the anonymous author of the whistleblower complaint and “anybody who spreads these mistruths.”
The WEF confirmed the launch of an investigation in its own official statement, noting the board had “unanimously supported” the decision to proceed after consulting with external legal counsel. The Forum emphasized that the allegations remain unproven.
“The Forum takes these allegations seriously, but they remain unproven, and will await the outcome of the investigation to comment further,” the statement read.
The World Economic Forum, based in Geneva, is best known for its annual meetings in Davos, where global political, business, and media leaders gather to discuss international policy.
Klaus Schwab, who founded the organization in 1971, has been a prominent figure in shaping its direction and messaging over the last five decades.
The allegations and resulting investigation come at a time when the WEF has faced increased scrutiny from critics who view the organization as unaccountable and overly influential in global governance matters.
Schwab’s sudden departure amid financial misconduct accusations is likely to fuel further debate over transparency and accountability within the organization.
The independent investigation into Schwab’s alleged conduct is ongoing.
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