Latest news with #Forum-funded
Gulf Insider
22-07-2025
- Business
- Gulf Insider
World Economic Forum (WEF) Founder Denies He Fudged Data, Racked Up $1.1M In Expenses
Klaus Schwab, the 87-year-old architect of Davos and the WEF's global elite gatherings, slammed the organization's board of trustees on Sunday, accusing them of breaking a confidentiality deal by letting media outlets get wind of the allegations. 'I am in a position to refute all the accusations brought up against me,' Schwab said in a statement after Swiss newspaper SonntagsZeitung detailed preliminary findings from a law firm's probe. The investigation, conducted by Swiss law firm Homburger and ordered by the WEF's own board, reportedly found that Schwab interfered with the forum's flagship economic rankings to favor political allies and avoid controversy – and submitted 900,000 Swiss francs (about $1.1 million) in expenses that investigators say lacked proper justification. Three months ago we reported that Schwab was under investigation by the WEF after a whistleblower alleged financial and ethical misconduct by Mr. 'eat the bugs' and his wife. In an anonymous letter from sent to the board of directors by 'current and former Forum employees,' Schwab and his wife are accused of commingling their personal affairs with WEF resources without proper oversight, and much more… Among the most serious allegations: Schwab asked junior employees to withdraw thousands of dollars from ATMs on his behalf and used Forum funds to pay for private, in-room massages at hotels. His wife Hilde, a former Forum employee, scheduled 'token' Forum-funded meetings in order to justify luxury holiday travel at the organization's expense. The letter also raises concerns about how Klaus Schwab treated female employees and how his leadership over decades allegedly allowed instances of sexual harassment and other discriminatory behavior to go unchecked in the workplace Other allegations include the Schwab family's use of Villa Mundi – a luxury property bought before the pandemic by the Forum located next to the organization's Geneva headquarters, which the whistleblower letter maintains that Hilde Schwab maintains tight control over, and which the forum paid $30 million to purchase and another $20 million to renovate – also overseen by Hilde. Schwab says he paid the WEF back for said 'in-room massages', and denied the allegations about luxury travel and withdrawing funds. According to the WEF, its board unanimously supported the decision to launch an independent investigation 'following a whistleblower letter containing allegations against former Chairman Klaus Schwab. This decision was made after consultation with external legal counsel.' Schwab abruptly resigned from the WEF in April after the allegations surfaced. A replacement has yet to be named. The report claims Schwab personally intervened to tweak the WEF's Global Competitiveness Report to protect ties with key leaders like Indian Prime Minister Narendra Modi. In 2017, Schwab allegedly ordered a delay in releasing the rankings to avoid souring relations with India, whose score took a dive. He also reportedly advised holding back on boosting the UK's ranking to avoid giving ammo to Brexit supporters. In another incident in 2022, Schwab allegedly shared draft rankings with an unnamed country official whose position slipped, pushing to kill that year's report entirely. The WEF later blamed the cancellation on COVID-related disruptions. Schwab insists he's been deceived, saying he offered to sit for an interview with investigators on July 15 and was promised a chance to review the findings before any conclusions were published. 'In this respect I feel deceived,' he said. 'I am willing to defend my interests with all my strength, even in the context of a legal dispute.' The WEF stayed tight-lipped when contacted by Bloomberg, saying only that it would comment once the probe concludes, likely by late August. Sunday's revelations ramp up an already heated battle between Schwab and his former colleagues. Just weeks ago, the WEF and its founder released a joint statement claiming they were working to 'normalize' their strained relationship. But with accusations of data manipulation and lavish spending now in the open, that détente looks increasingly shaky. Source Zero Hedge
IOL News
24-04-2025
- Business
- IOL News
WEF confirms investigation into claims against founder Schwab
German Klaus Schwab, the founder and chairman of the Board of Trustees of the World Economic Forum. The World Economic Forum said Wednesday it has launched an investigation into fraud allegations against its founder Klaus Schwab that reportedly prompted his resignation this week. The 87-year-old Schwab, who for decades has greeted presidents and tycoons at the annual forum in the Swiss resort of Davos, said there was "not a shadow of proof" for the accusations. He added in a statement to the Swiss newspaper Blick that he had started defamation proceedings. In a statement confirming a Wall Street Journal report, the WEF said its board of trustees "unanimously supported the Audit and Risk Committee's decision to initiate an independent investigation following a whistleblower letter containing allegations against former Chairman Klaus Schwab". The longtime forum leader suddenly resigned on Monday, "with immediate effect". In a statement at the time, the WEF board hailed Schwab's "outstanding achievements" in his 55 years in charge. But the WSJ reported that the move had been spurred by a board decision to investigate allegations of financial and ethical misconduct by Schwab and his wife Hilde. 'Emergency meeting' The letter, said to have been sent by anonymous current and former WEF staff, "included allegations that Klaus Schwab asked junior employees to withdraw thousands of dollars from ATMs on his behalf and used Forum funds to pay for private, in-room massages at hotels," wrote the WSJ, which said it had seen the letter and spoken with people familiar with the case. It also alleged that his wife used Forum-funded meetings "in order to justify luxury holiday travel at the organisation's expense," the paper said. The letter reportedly raised concerns about how Schwab treated female employees, and how his leadership allegedly allowed instances of sexual harassment and discriminatory behaviour to go unchecked. Schwab had not reacted until his statement to Blick, which said: "There is not a shadow of proof for all these accusations." "It is a pure and simple lie (to say) that I asked young employees to withdraw thousands of dollars for me at automatic distributors," Schwab added. He said all personal expenses on his business trips were repaid and that he had started defamation proceedings. The board of trustees decided at an emergency meeting on Sunday to open a probe, and Schwab opted to resign immediately. In its statement Wednesday, WEF said its decision "was made after consultation with external legal counsel and in line with the Forum's fiduciary responsibilities". "While the Forum takes these allegations seriously, it emphasises that they remain unproven, and will await the outcome of the investigation to comment further." Networking showcase Schwab had already stepped down as executive chairman last year, with Norway's former foreign minister Borge Brende taking over daily management. Schwab said the handover would take until January 2027. WEF said its vice chairman Peter Brabeck-Letmathe will serve as interim chairman as a search committee looks for a permanent replacement for Schwab. Schwab was born in Ravensburg, Germany, on March 30, 1938. He studied at Swiss universities and at Harvard in the United States, and holds doctorates in engineering and economics, along with over a dozen honorary doctorates. He was a little-known business professor at the University of Geneva when he in 1971 founded the WEF's precursor, the European Management Forum. That first meeting reportedly drew fewer than 500 participants. Since then the event has swelled to attract thousands each year. Schwab broadened the conclave by inviting top political and business leaders, representatives from trade unions and civil society, assembling a prestigious Rolodex as he turned the gathering into a networking showcase. The WEF maintains that it "provides a global, impartial and not-for-profit platform for meaningful connection between stakeholders to establish trust, and build initiatives for cooperation and progress". 'Davos Man' Critics meanwhile charge that WEF's gatherings simply create a safe space for the corporate world to lobby governments without oversight. The annual event has fostered the concept of the "Davos Man", referring to the elite crowd of movers and shakers with global clout and reach. And Schwab and the organisation he founded have long been the focus of conspiracy theorists. Elon Musk, the multi-billionaire owner of X, said on the platform that Schwab "wants to be emperor of Earth". Misinformation and disinformation topped the WEF's list of short-term global risks in its latest global risk report. AFP
Business Recorder
23-04-2025
- Business
- Business Recorder
WEF confirms probe into claims against founder Schwab
GENEVA: The World Economic Forum confirmed Wednesday that it has launched an investigation into allegations made against its founder Klaus Schwab that reportedly prompted his resignation this week. In a statement confirming a report by the Wall Street Journal, the WEF said its board of trustees 'unanimously supported the Audit and Risk Committee's decision to initiate an independent investigation following a whistleblower letter containing allegations against former Chairman Klaus Schwab'. Schwab denies the claims, the paper added. The WEF, which hosts the annual meeting of wealthy, famous and influential global elites at the luxury Swiss ski resort town Davos, initially provided no explanation its longtime chairman's sudden resignation Monday 'with immediate effect'. In the first statement, the WEF's board hailed Schwab's 'outstanding achievements' in his 55 years in charge. But the WSJ reported that the decision had been spurred by a board decision to investigate allegations of financial and ethical misconduct by the longtime leader and his wife Hilde. The letter, said to have been sent by anonymous current and former WEF staff, 'included allegations that Klaus Schwab asked junior employees to withdraw thousands of dollars from ATMs on his behalf and used Forum funds to pay for private, in-room massages at hotels,' wrote the WSJ, which said it had seen the letter and spoken with people familiar with the case. 'It also alleged that his wife Hilde... scheduled 'token' Forum-funded meetings in order to justify luxury holiday travel at the organisation's expense,' the paper said. And the letter reportedly raised concerns about how Schwab treated female employees, and how his decades-long leadership allegedly allowed instances of sexual harassment and discriminatory behaviour to go unchecked. Schwab could not immediately be reached for comment, but according to the paper, he had vehemently denied all the allegations and threatened to sue if board members pursued an investigation. Despite this, the board of trustees decided at an emergency meeting on Sunday to open a probe, and Schwab opted to resign immediately. In its statement Wednesday, WEF said its decision 'was made after consultation with external legal counsel and in line with the Forum's fiduciary responsibilities'. 'While the Forum takes these allegations seriously, it emphasises that they remain unproven, and will await the outcome of the investigation to comment further.' Schwab had already stepped down as executive chairman last year, with Norway's former foreign minister Borge Brende taking over daily management.
RTÉ News
23-04-2025
- Business
- RTÉ News
WEF confirms investigation into claims against founder Schwab
The World Economic Forum confirmed today that it has launched an investigation into allegations made against its founder Klaus Schwab that reportedly prompted his resignation this week. In a statement confirming a report by the Wall Street Journal, the WEF said its board of trustees "unanimously supported the Audit and Risk Committee's decision to initiate an independent investigation following a whistleblower letter containing allegations against former Chairman Klaus Schwab". Schwab denies the claims, the paper added. The WEF, which hosts the annual meeting of wealthy, famous and influential global elites at the luxury Swiss ski resort town Davos, initially provided no explanation its longtime chairman's sudden resignation Monday "with immediate effect". In the first statement, the WEF's board hailed Schwab's "outstanding achievements" in his 55 years in charge. But the WSJ reported that the decision had been spurred by a board decision to investigate allegations of financial and ethical misconduct by the longtime leader and his wife Hilde. The letter, said to have been sent by anonymous current and former WEF staff, "included allegations that Klaus Schwab asked junior employees to withdraw thousands of dollars from ATMs on his behalf and used Forum funds to pay for private, in-room massages at hotels," wrote the WSJ, which said it had seen the letter and spoken with people familiar with the case. "It also alleged that his wife Hilde scheduled 'token' Forum-funded meetings in order to justify luxury holiday travel at the organisation's expense," the paper said. And the letter reportedly raised concerns about how Schwab treated female employees, and how his decades-long leadership allegedly allowed instances of sexual harassment and discriminatory behaviour to go unchecked. Schwab could not immediately be reached for comment, but according to the paper, he had vehemently denied all the allegations and threatened to sue if board members pursued an investigation. Despite this, the board of trustees decided at an emergency meeting on Sunday to open a probe, and Schwab opted to resign immediately. In its statement today, WEF said its decision "was made after consultation with external legal counsel and in line with the Forum's fiduciary responsibilities". "While the Forum takes these allegations seriously, it emphasises that they remain unproven, and will await the outcome of the investigation to comment further." Networking showcase Schwab had already stepped down as executive chairman last year, with Norway's former foreign minister Borge Brende taking over daily management. A few weeks ago, the 87-year-old Schwab said he would step down as non-executive chairman but with the handover lasting until January 2027. WEF said its vice chairman Peter Brabeck-Letmathe will serve as interim chairman as a search committee looks for a permanent replacement for Schwab. Schwab was born in Ravensburg, Germany, on March 30, 1938. He studied at Swiss universities and at Harvard in the US, and holds doctorates in engineering and economics, along with over a dozen honorary doctorates. He was a little-known business professor at the University of Geneva when he in 1971 founded the WEF's precursor, the European Management Forum. That first meeting reportedly drew fewer than 500 participants. Since then the event has swelled to attract thousands each year. Schwab broadened the conclave by inviting top political and business leaders, representatives from trade unions and civil society, assembling a prestigious Rolodex as he turned the gathering into a networking showcase. The WEF maintains that it "provides a global, impartial and not-for-profit platform for meaningful connection between stakeholders to establish trust, and build initiatives for cooperation and progress". Its mission, it says, is "improving the state of the world". 'Davos Man' Critics meanwhile charge that WEF's gatherings simply create a safe space for the corporate world to lobby governments without oversight. The annual event has fostered the concept of the "Davos Man", referring to the elite crowd of affluent and sometimes super-wealthy movers and shakers with global clout and reach. Schwab and the organisation he founded have long been the focus of conspiracy theorists. Elon Musk, the multi-billionaire owner of X, even said on the platform that Schwab "wants to be emperor of Earth".
New Indian Express
23-04-2025
- Business
- New Indian Express
WEF confirms investigation into allegations against founder Schwab following his resignation
GENEVA: The World Economic Forum confirmed Wednesday that it has launched an investigation into allegations made against its founder Klaus Schwab that reportedly prompted his resignation this week. In a statement confirming a report by the 'Wall Street Journal', the WEF said its board of trustees "unanimously supported the Audit and Risk Committee's decision to initiate an independent investigation following a whistleblower letter containing allegations against former Chairman Klaus Schwab". Schwab denies the claims, the paper added. The WEF, which hosts the annual meeting of wealthy, famous and influential global elites at the luxury Swiss ski resort town Davos, initially provided no explanation its longtime chairman's sudden resignation Monday "with immediate effect". In the first statement, the WEF's board hailed Schwab's "outstanding achievements" in his 55 years in charge. But the WSJ reported that the decision had been spurred by a board decision to investigate allegations of financial and ethical misconduct by the longtime leader and his wife, Hilde. Emergency meeting The letter, said to have been sent by anonymous current and former WEF staff, "included allegations that Klaus Schwab asked junior employees to withdraw thousands of dollars from ATMs on his behalf and used Forum funds to pay for private, in-room massages at hotels," wrote the WSJ, which said it had seen the letter and spoken with people familiar with the case. "It also alleged that his wife Hilde... scheduled 'token' Forum-funded meetings in order to justify luxury holiday travel at the organisation's expense," the paper said. And the letter reportedly raised concerns about how Schwab treated female employees, and how his decades-long leadership allegedly allowed instances of sexual harassment and discriminatory behaviour to go unchecked. Schwab could not immediately be reached for comment, but according to the paper, he had vehemently denied all the allegations and threatened to sue if board members pursued an investigation. Despite this, the board of trustees decided at an emergency meeting on Sunday to open a probe, and Schwab opted to resign immediately. In its statement Wednesday, WEF said its decision "was made after consultation with external legal counsel and in line with the Forum's fiduciary responsibilities". "While the Forum takes these allegations seriously, it emphasises that they remain unproven, and will await the outcome of the investigation to comment further." Networking showcase Schwab had already stepped down as executive chairman last year, with Norway's former foreign minister Borge Brende taking over daily management. A few weeks ago, the 87-year-old Schwab said he would step down as non-executive chairman but with the handover lasting until January 2027. WEF said its vice chairman Peter Brabeck-Letmathe will serve as interim chairman as a search committee looks for a permanent replacement for Schwab. Schwab was born in Ravensburg, Germany, on March 30, 1938. He studied at Swiss universities and at Harvard in the United States, and holds doctorates in engineering and economics, along with over a dozen honorary doctorates. He was a little-known business professor at the University of Geneva when he in 1971 founded the WEF's precursor, the European Management Forum. That first meeting reportedly drew fewer than 500 participants. Since then the event has swelled to attract thousands each year. Schwab broadened the conclave by inviting top political and business leaders, representatives from trade unions and civil society, assembling a prestigious Rolodex as he turned the gathering into a networking showcase. The WEF maintains that it "provides a global, impartial and not-for-profit platform for meaningful connection between stakeholders to establish trust, and build initiatives for cooperation and progress". Its mission, it says, is "improving the state of the world". Davos Man Critics meanwhile charge that WEF's gatherings simply create a safe space for the corporate world to lobby governments without oversight. The annual event has fostered the concept of the "Davos Man", referring to the elite crowd of affluent and sometimes super-wealthy movers and shakers with global clout and reach. And Schwab and the organisation he founded have long been the focus of conspiracy theorists. Elon Musk, the multi-billionaire owner of X, even said on the platform that Schwab "wants to be emperor of Earth". Misinformation and disinformation topped the WEF's list of short-term global risks in its latest global risk report.
