Klaus Schwab, founder of the World Economic Forum (WEF), is facing renewed scrutiny from the very institution he built, after a whistleblower’s letter alleged financial and ethical misconduct involving both him and his wife Hilde.
The anonymous letter, delivered to the Forum’s board last week, accused the Schwabs of misusing WEF resources for personal gain and raised concerns about the organization’s culture and governance, according to The Wall Street Journal. The latter claimed Schwab directed junior staff to withdraw large sums of cash from ATMs on his behalf and used WEF funds for hotel room massages.
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The letter also alleged that Hilde Schwab arranged nominal WEF meetings to justify luxury travel funded by the organization. Schwab, who has been at the helm of the Forum since its founding, denied the allegations and pushed back against a formal probe, saying the claims were false and threatening legal action against the letter’s author and anyone who spreads the accusations.
Despite his objections, the Forum’s board convened on Easter Sunday and voted to launch an independent investigation, as advised by outside legal counsel. Schwab abruptly resigned as chairman rather than complete a phased transition, a move that upended plans for him to step down gradually by 2027.
A Forum spokesperson said the board acted unanimously, stressing that the allegations remain unproven, pending the investigation’s findings.
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Meanwhile, Schwab and his wife issued a blanket denial through a spokesman, who said any hotel massage charges were reimbursed and described the letter as inaccurate and damaging. Among the concerns raised in the letter were claims about Villa Mundi, a lavish property next to the Forum’s Geneva headquarters, purchased and renovated by the WEF for around $50 million.
The whistleblower alleged the Schwabs retained privileged access to the estate for private use, a claim they deny. Hilde Schwab, who oversaw the renovations, said the building serves as a model of sustainable architecture and is used strictly for Forum-related events.
The letter also echoed earlier accusations about Schwab’s leadership style and workplace culture, including alleged tolerance of harassment and discrimination, charges previously reported by the Wall Street Journal and disputed by the Forum. Internal trust between Schwab and the Forum’s high-profile board reportedly eroded over the past year.
After receiving the latest complaint, the board’s audit and risk committee moved quickly to approve an inquiry. Schwab, now 87, was not granted a chance to address the board before his resignation was accepted and publicly announced Monday.
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In a final gesture, Schwab forfeited a pension worth 5 million Swiss francs, according to his spokesman, who said the founder had been denied an opportunity to defend himself directly. Peter Brabeck-Letmathe, former Nestlé CEO and current Forum board member, has been appointed interim chairman as the group initiates a global search for Schwab’s permanent successor.
It was first reported in May 2024 that Schwab will step down as executive chairman of the WEF by January 2025, transitioning to a non-executive role. He announced the move in an internal email, marking the end of his leadership since founding the organization in 1971.
The WEF and Klaus Schwab did not immediately respond to the Daily Caller News Foundation’s request for comment.
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First published by the Daily Caller News Foundation.
