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The World Economic Forum has launched an investigation into whistleblower allegations against its founder, Klaus Schwab, accelerating his exit from the organisation behind the annual Davos gathering for business and political leaders.
Schwab resigned as chair of WEF’s board of trustees with immediate effect on Sunday at an extraordinary meeting, where trustees discussed fresh claims against the founder that had surfaced in what the organisation called a “whistleblower letter”.
The trustees unanimously supported a decision to call in legal advisers and launch an independent investigation, the WEF said.
“This decision was made after consultation with external legal counsel and in line with the forum’s fiduciary responsibilities,” it added.
The new claims come on top of others made last year alleging Schwab presided over a toxic workplace culture where sexual harassment was not properly investigated and Black and female employees were discriminated against. In March, WEF reported to sponsors that the earlier investigation “did not find the forum had committed any legal violations” and “did not substantiate” allegations of misconduct against him.
The Wall Street Journal on Tuesday reported the whistleblower letter contained additional allegations of financial misconduct, including that Schwab and his family made personal use of WEF property and cash. A spokesperson for Schwab told the WSJ that every allegation was false, that the organisation was always reimbursed for personal spending, and that the family intended to file a lawsuit against the people behind the anonymous letter.
The WEF said that while it “takes these allegations seriously, it emphasises that they remain unproven, and will await the outcome of the investigation to comment further”.
The Financial Times earlier this month reported Schwab, 87, had told the board of trustees he intended to retire when a successor was found.
WEF’s vice-chair Peter Brabeck-Letmathe, the Austrian businessman who previously chaired Nestlé and Formula 1, was appointed on Sunday as chair on an interim basis.
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