An internal investigation has concluded Klaus Schwab committed no wrongdoing during his leadership of the World Economic Forum.
By yourNEWS Media Newsroom
An internal probe by the World Economic Forum has cleared founder Klaus Schwab of misconduct following allegations from whistleblowers that he misused organizational funds. Schwab, who stepped down as chairman in April, had been accused of directing staff to pay for in-room massages at hotels, withdrawing WEF cash for personal use, and manipulating the group’s global competitiveness report to benefit favored governments. The accusations were first reported after Schwab faced scrutiny over alleged financial and ethical improprieties, including claims outlined here and here.
The 87-year-old German-born economist denied all wrongdoing and reportedly launched a lawsuit against the whistleblowers. To address the claims, the WEF board retained the Swiss law firm Homburger and the U.S. firm Covington & Burling to conduct an internal review.
According to the Financial Times, the investigation found only “minor irregularities, stemming from blurred lines between personal contributions and forum operations,” concluding these reflected Schwab’s “deep commitment rather than intent of misconduct” according to the report. The WEF board added it intends to “address all issues identified throughout the investigation, including strengthening the governance in general.”
In a statement, Schwab said he was “pleased that today’s decision lays the foundation for the WEF to continue contributing to the positive development of our society in the future, mindful of its more than 50-year history.”
Following Schwab’s departure, the WEF appointed BlackRock chief executive Larry Fink and Hoffmann-La Roche vice-chairman André Hoffmann as interim board chairmen. They said they plan on “reinventing and strengthening the forum as an indispensable institution for public-private co-operation.”
The organization was originally launched in 1971 as the European Management Forum with just $6,000 in startup funds. Under Schwab’s leadership, it became a global hub for political and business leaders, hosting annual gatherings in Davos, Switzerland.
Over five decades, Schwab positioned the WEF as a champion of wide-ranging global initiatives including carbon taxes, central bank digital currencies, expanded global governance, technology regulation, and transhumanism. He also popularized the concept of a “Great Reset” — a proposal to reshape capitalism through social justice considerations rather than relying solely on market dynamics.