A formal investigation has been launched against Klaus Schwab, founder of the World Economic Forum in Davos, following a whistleblower’s claims that he misappropriated WEF funds, according to the Wall Street Journal.
Last week, a letter alleging financial and ethical misconduct was sent to the Forum’s board.
The document accuses Schwab of several incidents of misconduct, including:
Having junior staff make ATM cash withdrawals on his behalf
Billing the Forum for private in-room hotel massages
Arranging token meetings through his wife to justify luxury vacations financed by the organization
Schwab, who transformed Davos into a global platform for economic discussion, has stepped down as Chairman.
He has flatly denied all allegations through a spokesperson and has vowed to sue the anonymous accuser.
It should be noted that a June, 2024, Wall Street Journal report citing current and former staff claimed that under Klaus Schwab’s decades-long leadership, the World Economic Forum fostered a culture where sexual harassment and discrimination against women and Black employees was allowed to fester.
Several female employees described being harassed by senior managers, with sources saying the toxic tone was “set at the very top.”