WEF launches investigation into Schwab over allegations he misused funds, mistreated employees

The World Economic Forum has launched an investigation into its founder and outgoing chairman, Klaus Schwab, following allegations he misused funds and mistreated employees.

The claims were brought forth by anonymous whistleblowers shortly before Schwab announced his resignation.

According to the Wall Street Journal, the WEF's board "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."

His wife, Hilde, has also been accused of misusing WEF funds for personal expenses.

"This decision," they added, "was made after consultation with external legal counsel and in line with the Forum’s fiduciary responsibilities. The investigation will be led by the Audit and Risk Committee with the support of independent legal experts."

The WEF emphasized that while the allegations were being taken "seriously," they all "remain unproven." A spokesperson added that the organization "will await the outcome of the investigation to comment further."

Schwab resigned on Monday after serving as the chairman of the WEF's board since founding it in 1971.

"Following my recent announcement, and as I enter my 88th year," Schwab said, "I have decided to step down from the position of Chair and as a member of the Board of Trustees, with immediate effect."

According to the WEF Vice Chairman Peter Brabeck-Letmathe will serve as chairman while the board searches for a permanent replacement for Schwab.