The World Economic Forum (WEF), known for its annual Davos gathering of global leaders, is launching an independent inquiry into whistleblower allegations against its founder, Klaus Schwab. This was confirmed by Digital.
The first reported the complaint on Tuesday, a day after the 87-year-old Schwab stepped down as chairman and member of the Board of Trustees, effective immediately.
According to the Journal, an anonymous letter to the board—whose members include former Vice President Al Gore, Queen Rania of Jordan, and European Central Bank President Christine Lagarde—alleges financial and ethical improprieties by Schwab and his wife, Hilde. The accusations include Schwab allegedly using subordinates to withdraw thousands of dollars from ATMs for him and using WEF funds for private massages at hotels.
The letter also claims his wife, a former WEF staffer, arranged “token” meetings funded by the forum to justify lavish holiday travel at the organization’s expense.
A spokesperson for the Schwab family refuted all claims about luxury travel and cash withdrawals, telling the Journal that Klaus Schwab always reimbursed the forum for any massages charged to hotels during travel. The spokesperson added that the family intends to sue the whistleblower and “anybody who spreads these mistruths.”
The Journal reported that the board held an emergency meeting on Easter Sunday to discuss the whistleblower allegations and determine a course of action.
“The Board of Trustees of the World Economic Forum has unanimously agreed to the Audit and Risk Committee’s decision to launch an independent investigation following a whistleblower letter containing allegations against former Chairman Klaus Schwab,” the WEF stated in a statement obtained by Digital. “This decision was made in consultation with external legal counsel and aligns with the Forum’s fiduciary duties.”
“The Audit and Risk Committee will lead the investigation with the assistance of independent legal experts,” the statement continued. “The Committee will act quickly to define its processes and parameters and will keep the Board informed of its progress. While the Forum takes these allegations seriously, it stresses that they are currently unproven and will await the investigation’s results before commenting further.”
“Under the interim chairmanship of Peter Brabeck-Letmathe and the continuing leadership of President and CEO Børge Brende, the Forum remains fully dedicated to its mission and responsibilities.”
When announcing Schwab’s departure on Monday, the WEF stated that its board “acknowledged the outstanding achievements of the retired” Schwab.
“He established the foremost global platform for dialogue and progress, and the Board expressed its appreciation for his 55 years of unwavering leadership at the Forum’s helm,” the WEF said in a statement. “At a time of rapid global transformation, the need for inclusive dialogue to navigate complexity and shape the future is more crucial than ever. The Board of Trustees of the World Economic Forum emphasizes the importance of remaining committed to its mission and values as a facilitator of progress. Building on its trusted position, the Forum will continue to convene leaders from all sectors and regions to share insights and promote collaboration.”
The annual Davos meeting has long brought together leading business executives, government officials, academics, international organizations, cultural figures, sports icons, and celebrities for discussions on global economic issues.
President Donald Trump addressed the Davos meeting remotely in January, just three days after his inauguration.
“What the world has seen in the past 72 hours is a revolution of common sense,” Trump said, referring to his plan to initiate a “Golden Age” for America. “Our country will soon be stronger, wealthier, and more united than ever before, and the entire planet will be more peaceful and prosperous as a result of this incredible momentum and what we’re doing and going to do.”
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