WEF Investigating After Klaus Schwab Accused Of Ritzy Spending On Personal Perks

The World Economic Forum is investigating its founder and former chairman Klaus Schwab over whistleblower complaints of unethical conduct and misappropriating organization funds.

Schwab stepped down as chair and as a member of the board of trustees on Monday, just days after the board received an anonymous letter with allegations against Schwab and his wife, Hilde, according to The Wall Street Journal. Schwab had announced earlier this month that he planned to resign as the non-executive chairman of WEF by January of next year amid an investigation into the WEF’s workplace culture.

The earlier probe into WEF’s workplace culture also implicated Schwab, but the WEF said that the allegations against him were not substantiated. Schwab and his wife have denied all allegations against them in both probes.

The letter stated that it is from current and former employees of the WEF.

“We feel compelled to share a comprehensive account of systemic governance failures and abuses of power that have taken place over many years under the unchecked authority of Klaus Schwab,” the letter says.

The letter included accusations against the Schwabs such as using WEF funds to pay for massages, setting “token” meetings in ritzy spots around the world to justify the use of WEF funds for vacations, and using WEF property as personal getaways.

The WEF board said it unanimously supported an investigation “following a whistleblower letter containing allegations against former Chairman Klaus Schwab. This decision was made after consultation with external legal counsel.”

The WEF takes “these allegations seriously, but they remain unproven, and will await the outcome of the investigation to comment further,” the board said.

Schwab, who denied a request to address the allegations to the board personally, said through a spokesman that he planned to file a lawsuit against whoever is responsible for the letter and “anybody who spreads these mistruths.”

Schwab announced his plans to eventually leave WEF earlier this month, but the letter expedited his departure from the organization he founded.

“Following my recent announcement, and as I enter my 88th year, I have decided to step down from the position of Chair and as a member of the Board of Trustees, with immediate effect,” Schwab said in a statement on Monday.

Schwab’s departure comes amid an exodus of other top executives at the group as it grapples with an investigation and accusations of a workplace culture that ignored discrimination against women and black people.