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Just days after officially stepping down as Executive Chairman of the World Economic Forum, Klaus Schwab is now at the center of a financial misconduct investigation following allegations raised by an anonymous whistleblower.
The claims, which surfaced shortly after Schwab’s resignation, accuse the 86-year-old economist of using organizational resources for personal or family benefit—charges that have prompted the WEF’s board to launch an independent internal probe. The board has since appointed former Nestlé chairman Peter Brabeck-Letmathe to serve as interim chair while the investigation is ongoing.
Although no formal charges have been filed, the World Economic Forum confirmed that the allegations are being taken seriously, emphasizing its commitment to transparency and good governance. “We will ensure a thorough review of the facts and uphold our values of integrity and accountability,” the organization said in a brief statement released Tuesday.
The whistleblower letter, which reportedly outlines concerns about financial mismanagement and weak internal oversight, was submitted confidentially to the WEF board. The contents of the letter have not been made public, but insiders say it has raised “credible concerns” about Schwab’s leadership practices in recent years.
A spokesperson for Schwab has pushed back strongly against the claims, calling them “baseless” and part of a “targeted smear campaign.” The spokesperson added that Schwab intends to take legal action against the source of the allegations and reiterated that any personal expenses had been duly reimbursed.
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This isn’t the first time the WEF has faced internal scrutiny. In recent years, reports have surfaced of workplace grievances within the organization, including accusations of harassment and discrimination. While earlier investigations found no violations of Swiss labor laws, they did spark a review of internal policies and leadership culture.
Schwab, who founded the WEF in 1971, has long been a central figure in shaping global economic discourse. The annual forum in Davos, Switzerland, has attracted world leaders, business giants, and civil society figures for decades, offering a platform for high-level discussions on global challenges.
His departure was already being seen as the end of an era. But now, the transition has taken on a different tone, as the organization he built from the ground up grapples with a growing controversy that could redefine its future.
