The World Economic Forum announced that it has launched an investigation into its recently departed founder, Klaus Schwab, over allegations of misconduct.
The WEF said its board unanimously agreed to initiate an investigation “following a whistleblower letter containing allegations against former Chairman Klaus Schwab,” the organization said in a statement obtained by The Wall Street Journal. “This decision was made after consultation with external legal counsel.”
According to the statement, the allegations are being taken “seriously” but “remain unproven.” The WEF will “await the outcome of the investigation to comment further.”
Allegations being investigated include Schwab asking employees to “withdraw thousands of dollars from ATMs on his behalf” and the use of “Forum funds to pay for private, in-room massages at hotels,” the WSJ reported. Schwab’s spokesman said the WEF founder would pay the Forum back for the funds used in such activities.
Schwab has denied the allegations and said he would challenge them in a lawsuit.
The probe opened Easter Sunday, prompting Schwab to resign immediately.
“Following my recent announcement, and as I enter my 88th year, I have decided to step down from the position of Chair and as a member of the Board of Trustees, with immediate effect,” Schwab said upon announcing his departure.
His resignation was accepted during what was considered an “extraordinary” board meeting, the WEF explained.
Last year, Schwab was accused of sexual harassment. Former WEF staffers revealed to the WSJ that the organization has been “allowed to fester an atmosphere” of sexual harassment and discrimination under Schwab’s leadership.
Staffers explained that “women received warnings about Schwab: If you find yourself alone with him, he may make uncomfortable comments about your appearance,” the outlet noted. “They describe his behavior as more awkward than menacing, but inappropriate for a leader.”
