Davos Founder Schwab Cleared Of Misconduct By WEF Probe
"Following a thorough review of all facts, the Board has concluded that ... there is no evidence of material wrongdoing by Klaus Schwab," the board announced.
In April, the Wall Street Journal reported that an anonymous letter sent to the prestigious institution's board of directors accused Schwab and his wife Hilde of mixing their personal affairs with Forum resources without proper oversight.
A spokesperson for Schwab had immediately denied all these accusations, but the 87-year-old said he would step down as head of the WEF.
The board of the WEF, best known for its annual summit for political and business elites in the luxury Swiss ski resort of Davos, asked a law firm to carry out an independent probe of the allegations.
"Minor irregularities, stemming from blurred lines between personal contributions and Forum operations, reflect deep commitment rather than intent of misconduct," the statement said.
"The Board has taken action to address all issues identified throughout the investigation, including strengthening the governance in general."
Also on Friday, the WEF said it will be replacing former Nestle CEO Peter Brabeck-Letmathe as interim chairman of the board.
He is being replaced by the billionaire duo of Larry Finck, the American co-founder of the investment fund Blackrock, and Andre Hoffmann, the Swiss vice-chairman of the pharmaceutical group Roche, according to a separate statement.
The letter alleged Schwab had asked junior employees to withdraw "thousands of dollars" from ATMs for him and used organisation funds to pay for massages during hotel stays. But the probe found nothing improper in his conduct.
Schwab was born in Ravensburg, Germany, on March 30, 1938. He was married with two children.
He was a professor of business management at the University of Geneva, where he taught until 2003, when in the early 1970s he launched the "European Management Forum," the precursor to the current Forum.
He expanded it by inviting American business leaders, successfully building a huge network of the world's economic and political elite, transforming the event into a major high-level international gathering dedicated to business relations and the exchange of ideas.
The Forum's success has led to the satirical concept of "Davos Man", the supposed avatar of a globalised elite of the stateless ultra-rich committed to free trade and high-minded seminars on corporate social responsibility.
Like other international organisations, the WEF has spurred conspiracy theories alleging that it was seeking to establish a "new world order".
Elon Musk, the world's richest man and once an influential member of US President Donald Trump's inner circle, accused Schwab on his social media platform X of wanting to "be the emperor of the Earth."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
DW
8 hours ago
- DW
Germany updates: Merz backs possible Putin-Zelenskyy meeting – DW – 08/16/2025
German Chancellor Friedrich Merz and other European leaders have signed a joint statement backing a meeting between Volodymyr Zelenskyy, Vladimir Putin and Donald Trump. DW has more. German Chancellor Friedrich Merz has backed a potential meeting between the presidents of Ukraine, Russia and the United States. In other news, a prominent German lawmaker has made the case for Switzerland to join the European Union, particularly in light of the heavy tariffs placed on the Alpine country by the United States. Meanwhile, a man suspected of sexually abusing a 6-year-old girl at the Rulantica water park in Germany has been detained in Romania, according to German lawmaker Omid Nouripour has suggested that Switzerland could become a member of the European Union. "The German government should offer Switzerland the opportunity to quickly deepen cooperation, up to turbo membership in the EU," Nouripour, who is vice president of the German lower house of parliament (the Bundestag), told the German DPA news agency. "If our Swiss friends want to move closer to the European Union in light of new times, Germany should actively support this," he added. US President Donald Trump has imposed a hefty 39% tariff on imports from Switzerland, far higher than the 15% tariff on most products from the EU. Swiss economic associations have claimed this has put tens of thousands of jobs at risk. With a population of 9 million, Switzerland relies heavily on exports, with the US being the most important market, accounting for 18% in 2024. "For centuries, the Swiss have maintained a tradition of strict neutrality," said Nouripour. "However, the recent tariff dispute with Donald Trump painfully shows how vulnerable smaller states are when they are left to fend for themselves. Politically neutral, economically global — That no longer works in the new era." "From a Swiss perspective, the EU may not be the best choice, but it is by far the more reliable one," he said. For now, EU membership seems unlikely, with Switzerland's strongest party by votes, the right-wing populist Swiss People's Party (SVP), strictly against the notion. A 31-year-old man suspected of sexually abusing a 6-year-old girl at the Rulantica water park in Germany has been detained in Romania, police said in a statement. "Following intensive police investigations, the 31-year-old suspect was arrested in Romania on Friday evening," the statement read. "No further details about the arrest in Romania are available at this time," the statement added. Authorities had been searching for the Romanian national via an international arrest warrant. He is accused of taking the child from the Rulantica water park in Rust, near the French border, into a nearby wooded area last Saturday and abusing her. The man, who also lives in the region, allegedly left the child alone after the assault. She was discovered after being missing for around two hours. Police said surveillance footage identified the suspect. German Chancellor Friedrich Merz joined French President Emmanuel Macron, UK Prime Minister Keir Starmer and European Commission President Ursula von der Leyen in backing a three-way meeting between Ukrainian President Volodymyr Zelenskyy, Russia's Vladimir Putin and US President Donald Trump. The support for such a meeting comes after a US-Russia summit failed to yield any results as Trump and Putin met in Alaska. Merz, Macron, Starmer and Von der Leyen signed a statement supporting Ukrainian presence at any future US-Russia summits and insisted on maintaining pressure on Moscow, including through sanctions. The statement was also signed by Italian Prime Minister Giorgia Meloni, Finnish President Alexander Stubb and Polish Prime Minister Donald Tusk. The European leaders also insisted Russia "cannot have a veto against Ukraine's pathway to EU and NATO." "It will be up to Ukraine to make decisions on its territory. International borders must not be changed by force." Merz posted on X: "We welcomed President Trump's efforts to stop the killing in Ukraine, end Russia's war of aggression, and achieve just and lasting peace. Ukraine can count on our unwavering solidarity as we work towards a peace that safeguards Ukraine's and Europe's vital security interests." To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video from the Bonn online news team and welcome to our weekend edition of this blog covering current affairs in Germany. Germany's Chancellor Friedrich Merz, along with other European leaders, has backed a possible meeting between Volodymyr Zelenskyy, Vladimir Putin and Donald Trump. Follow up on this and more news, videos and analyses on the latest in Germany this weekend.
DW
10 hours ago
- DW
Brazil announces $5.5 bn package to counter Trump's tariffs – DW – 08/14/2025
Brazilian President Lula da Silva said the move is supposed to "create new things" out of the crisis caused by Donald Trump's tariffs. But Lula also said his country is still ready to negotiate. Brazilian President Luiz Inacio Lula da Silva announced a plan on Wednesday to support exporters who have been hit by high tariffs of up to 50% imposed by US President Donald Trump on several products from the country. The plan provides credit of 20 billion reais ($5.5 billion; €4.7 billion) to support the embattled exporters. Other measures in the plan include postponing tax charges for businesses affected by the tariffs, while also incentivizing Brazilians to buy locally produced goods that would have otherwise been exported to the US. "We cannot be scared, nervous and anxious when there is a crisis," Lula said. "A crisis is for us to create new things." Lula also said Trump has no good reasons for hitting Brazil with high tariffs. While the Trump administration announced sweeping tariffs on many countries around the world, Brazil was ultimately singled out with some of the highest levies of up to 50%. Trump said the additional tariffs were a reaction to the legal situation of his ally, the far-right populist former president, Jair Bolsonaro. Bolsonaro is currently under house arrest over allegations that he plotted a coup after losing the 2022 presidential election. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Lula did not hold back on the grounds for the tariffs, saying every time the US decides to "fight with someone," they paint their rivals as the devil. "Now they want to talk about human rights in Brazil… We have to look at what happens in the country that is accusing Brazil," Lula added, hinting at Trump's domestic policies. The US president had cited "human rights abuses" by the left-wing government in support of his ally Bolsonaro. Lula responded to the claims, saying Brazil's judiciary is independent, with the country's Finance Minister Fernando Haddad saying Brazil is being "sanctioned for being more democratic than its aggressor." The Brazilian leader has so far refrained from imposing higher tariffs on American imports, saying he is not interested in "worsening our relations with the US." "We like to negotiate," Lula said. "We don't want conflict. I don't want conflict with Uruguay, Venezuela, or even the US. The only thing we need to demand is that our sovereignty is untouchable, and that no one should have any say in what we should do."
DW
11 hours ago
- DW
What did the Alaska talks between Trump and Putin achieve? – DW – 08/16/2025
There was no breakthrough at the meeting between the American and Russian presidents. Now it is up to the embattled Ukrainians to decide. But what exactly? Having made no concessions, Putin can return home satisfied. Donald Trump loves to talk, especially about his supposed successes as a skilled negotiator and shrewd statesman. This time in Alaska, things were different. By his standards, the "deal-maker in chief" kept his appearance before the gathered press remarkably short, lasting only four minutes. After his three-hour meeting with Russian leader Vladimir Putin at a US military base near Anchorage, Trump said only that they had had an "extremely productive meeting." They had agreed on many things, he said, with only "one big thing" remaining. "We haven't done that yet. But there is a very good chance that we will get that done too," Trump said in an effort to sound friendly. The US president did not elaborate further. In fact, Trump made no mention of Ukraine by name. Only once did he refer to Russia's war of aggression. "We will end the deaths of five thousand people a week. President Putin wants that too," he said. Trump also failed to mention that Putin, a former KGB spy, could achieve this goal immediately if he stopped the attacks on Ukraine. The guest from Moscow remained extremely polite and calm. Without batting an eyelid, he suggested that the "situation" in Ukraine was about Russia's security. It may sound strange under the current circumstances, Putin said, but everything that is being done to the "brotherly people of Ukraine is a tragedy for us, a terrible wound. That is why our country is seriously interested in putting an end to it." To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Putin gave the impression that Russia was under threat and had to respond to "provocations." This is a reversal of the facts, which he presumably also presented to Donald Trump during their talks in Alaska. Many observers who closely follow the mood swings and erratic pronouncements of the 79-year-old US president believe that Trump picks up on and repeats whatever he last heard. The question is, therefore, how far the Russian narrative will catch on. Last Wednesday, it still seemed as if the US president was on the side of Ukraine, which is under attack. According to Chancellor Friedrich Merz, Donald Trump had "largely" agreed with the West's demands on Russia. Merz had organized a virtual preparatory summit from Berlin and formulated five points for the negotiations in Alaska. These included the demand that Ukraine alone should decide on its territory and the conditions for a ceasefire. Trump did mention this demand in his brief statement. He said that in the end, "they" would have to decide, referring to Ukrainian President Volodymyr Zelenskyy and the leaders of the major NATO countries. Trump announced that he would call them immediately to inform them about the talks. It is unclear whether he will be able to announce any concrete agreements with Russia during these phone calls. On his way back to Washington, Trump told reporters that it was now up to Zelenskyy to reach an agreement with Moscow. Zelenskyy has since announced that he will travel to Washington on Monday "to discuss all of the details regarding ending the killing and the war," he wrote on X. He had had a one-hour telephone conversation with Trump, which was then joined by European heads of state and government. 'We support President Trump's proposal for a trilateral meeting between Ukraine, the USA, and Russia,' Zelenskyy wrote. He continued: "It is important that Europeans are involved at every stage to ensure reliable security guarantees together with America." After the meeting, Donald Trump told reporters he had a "fantastic relationship with President Putin, with Vladimir." Before the meeting, he had described the Russian leader as a "smart guy." A few weeks ago, however, he also said that Putin talks a lot of nonsense and does not keep his promises, but instead intensifies his attacks on Ukraine after each of their phone calls. However, during personal meetings with the Russian leader, Trump always seems to hold back. No criticism, not even subtle, was heard from Donald Trump's mouth. He is of course far less restrained with other state guests. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Trump followed Putin's eight minutes of remarks and excursions into Russian-American history at the joint press conference with a kind of frozen smile. He had already displayed the same expression in Helsinki in 2018. At that time, the two men came together for their first long summit meeting. Trump talked himself into a corner and went so far as to say that he trusted the man from the Kremlin more than his own intelligence services. Putin was not stingy with pleasantries in his remarks, praising the great prospects for cooperation between the US and Russia and politely thanking the Trump administration for its efforts to end the conflict in Ukraine. However, he immediately added that the "roots of the conflict" must be eliminated. By this he meant Ukraine's ties to the West, the membership of Eastern European countries in NATO, and NATO troops on its eastern flank. The bottom line is that few concrete results were made public. There was no mention whatsoever of a ceasefire or steps toward one. Donald Trump had announced that if the Alaska summit was successful, there would be a trilateral meeting between him, Putin and the Ukrainian president. But there was no mention of that following the talks. "We may see each other again soon," the US president said vaguely. The Russian leader then invited the perplexed Trump to Moscow in English. "That could possibly happen," Trump said, even if he would face some criticism for it. If Moscow were the next venue for talks it would make it almost impossible for Volodymyr Zelenskyy to attend. Before the summit, Trump had threatened Russia with "severe consequences" if Putin did not move toward a ceasefire. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Whether these consequences will now follow — meaning new, harsh economic sanctions against Russia's business partners, such as India and China — remains unclear. However, the US president hinted that "after what happened today, higher tariffs against China are unlikely." Unfortunately, he did not elaborate on what had actually happened. However, Trump is likely to be in a hurry to continue talks and efforts to bring peace to Ukraine. After all, the Nobel Committee will decide who will receive the Nobel Peace Prize at the beginning of October, in two months' time. Trump is desperate to win it. He made no secret of this in a recent telephone conversation with Norwegian Finance Minister and former NATO Secretary General Jens Stoltenberg, according to Norwegian media reports. The Nobel Peace Prize is traditionally awarded in early December in the Norwegian capital Oslo. Trump has already been nominated several times. Even his former rival in the presidential election campaign, Democrat Hillary Clinton, said she would support him. But only if he achieves a "just peace for Ukraine." After the summit in Alaska, Trump still has a long way to go to achieve that.
