The World Economic Forum (WEF) confirmed on Wednesday that it has initiated an investigation into Klaus Schwab, its founder, following serious allegations that led to his resignation earlier this week.
The organization’s board of trustees announced it unanimously supported the decision to launch an independent inquiry, which was prompted by a whistleblower letter containing accusations of financial and ethical misconduct.
The WEF, which organizes the high-profile annual gatherings of the world’s most influential figures in Davos, Switzerland, had not initially explained Schwab’s sudden departure.
The first statement praised Schwab’s leadership, citing his “outstanding achievements” during his 55 years at the helm.
However, the Wall Street Journal reported that Schwab’s resignation followed the board’s decision to investigate claims involving both Schwab and his wife, Hilde Schwab, a former employee of the Forum.
READ ALSO: New Jersey Wildfire Burns Through Thousands of Acres as Residents Flee
The whistleblower letter, reportedly written by current and former WEF staff, included allegations that Schwab had asked junior employees to withdraw significant sums of money from ATMs on his behalf and had used Forum funds for private massages at hotels during WEF events.
The letter also claimed that Hilde Schwab had scheduled meetings under the guise of Forum activities to justify luxury vacations funded by the organization.
Schwab, who has led the WEF since its founding in 1971, has denied all claims made in the letter. In response to the investigation, the WEF has promised to maintain transparency and has emphasized its commitment to ethical practices.
The allegations come at a time when the WEF has faced increasing scrutiny regarding its influence on global economics and politics.
While Schwab’s resignation marks a significant change for the organization, the investigation is likely to attract more attention to the practices of the influential group.
