Klaus Schwab, founder of the World Economic Forum (WEF), faces new scrutiny from the very institutions he has built after alleging financial and ethical misconduct, including both him and his wife Hilde.
An anonymous letter delivered to the forum’s board of directors last week accusing Schwab of misusing WEF resources for personal gain and raised concerns about the organization’s culture and governance. According to To the Wall Street Journal. The latter alleged that Schwab had instructed junior staff to withdraw large amounts of cash from the ATM on his behalf and use WEF funds for massages in his hotel room.
The letter also alleged that Hilde Schwab arranged a nominal WEF meeting to justify the luxurious travel funded by the organization. Schwab, who has been at the helm of the forum since its inception, denied the allegations, opposed to formal investigations, saying the allegations were false and threatened legal action against the author of the letter and those who spread the accusation.
Berlin, Germany – September 16: In this screen glove, Klausschwab speaks as part of Switch Green on the first day of the Greentech Festival held at Kraftwerk Mitte, which aired in Berlin, Germany on September 16, 2020. (Greentech Festival’s Getty Images/Getty Images by Getty Images/Getty Images)
Despite his objections, the forum’s board of directors was convened on Easter Sunday and voted to launch an independent investigation, as advised by external lawyers. Rather than completing the gradual transition, Schwab suddenly resigned as chairman.
a forum A spokesperson said the board acted unanimously, emphasizing that the allegations have not been proven that the findings are pending. (Related: “What you’re doing is wrong”: Trump told CEO Point-Blank not to blame conservatives during Globalist Shindig)
Meanwhile, Schwab and his wife issued a blanket denial through a spokesman. The spokesman said the hotel’s massage fees were refunded and explained that the letter was inaccurate and damaging. Among the concerns raised in the letter were allegations about Villa Mundi, a gorgeous property next to the Forum’s Geneva headquarters, which was purchased and renovated by WEF for around $50 million.
Dead Sea in Jordan – May 22: Klaus Schwab (R), founder and executive chairman of the World Economic Forum, welcomes Ibn al-Hussein, King Abdullah II of Jordan, at the opening of the World Economic Forum in the Middle East and North Africa on May 22, 2015 in the Dead Sea in Jordan. (Photo by Jordan Pix/Getty Image)
The whistleblower allegedly claimed that Schwab retained privileged access to the property for private use, they denied. Hilde Schwab, who oversaw the renovation, said the building serves as a model for sustainable architecture and is being used strictly for forum-related events.
The letter also reflected previous accusations regarding Schwab’s leadership style and workplace culture, including allegations of harassment and discrimination, as well as charges previously reported by the Wall Street Journal and contested in the forum. The internal trust between Schwab and the forum’s well-known board of directors has reportedly been eroded over the past year.
After receiving the latest complaints, the Board of Directors’ Audit and Risk Committee moved swiftly and approved the investigation. Schwab, now 87, has not been given the opportunity to address the board before his resignation was accepted and publicly announced on Monday.
His spokesman said in his final gesture, Schwab confiscated the value of 5 million Swiss francs. Former Nestlé CEO and current Forum Board member Peter Brebeck Letomate has been appointed interim chairman as the group launches a global search for Schwab’s permanent successor.
It was first reported in May 2024 that Schwab would resign as WEF executive chairman by January 2025 and would move into a non-executive role. He announced the move in an internal email and marked the end of his leadership since establishing the organization in 1971.
WEF and Klaus Schwab did not immediately respond to a request for comment from the Daily Caller News Foundation.
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