Klaus Schwab, founder of the World Economic Forum, stepped down from his role as chair over the Easter weekend, days before damaging whistleblower allegations triggered an emergency investigation by the organization’s board. An anonymous letter, publicized on Wednesday, lists several claims from current and former employees accusing Schwab of manipulating research, misusing funds, and creating a toxic workplace culture. The 87-year-old had previously planned to step down by January 2027, but he claims those plans were derailed by what he described as a “character assassination.” Schwab slapped with accusations after WEF exit According to the Wall Street Journal, the whistleblower letter was sent to the WEF board last week. It claimed that Schwab had altered the methodology behind the Forum’s influential “Global Competitiveness Report.” The report ranks nations based on productivity and resilience, topics discussed at the Forum’s annual Davos summit. The letter alleged that Schwab modified the methodology in response to complaints from governments dissatisfied with their rankings. Schwab has denied any wrongdoing, insisting the changes were part of routine academic refinement. “ I developed the methodology for the Competitiveness Report originally in 1979 and remain its intellectual leader ,” he said in a statement. The former WEF head admitted that some governments had submitted corrections or updates to data, but denied using the data to manipulate rankings. “ Some governments contacted me offering corrections to take updated data into account or to correct flaws in the analysis. I passed on this information to the teams. To construct this as a manipulation is an insult to my academic standing ,” he reckoned. Schwab also faces allegations that he and his wife, Hilde, used WEF resources for personal benefit. The letter proclaims that Schwab asked junior staff to withdraw large amounts of cash on his behalf, billed personal travel on the Forum , and used its properties for private purposes. A spokesman for the retired economist called the accusations “a pure lie” and announced they would file defamation lawsuits against both the anonymous letter’s author and anyone involved. “ Whenever Schwab charged massages at a hotel to the Forum while on travel, he’d always pay the Forum back ,” the spokesman propounded. The couple also denied misusing properties, stating that they only hosted Forum-related events at Villa Mundi, a house near their residence where several renovations had been made. Schwab himself dubbed the whistleblower’s claims “unfounded” and “calumnious.” He accused his former colleagues of reacting hastily without offering him the opportunity to respond. In his written statement, he also addressed the accusation that he used WEF staff to campaign for a Nobel Peace Prize. “ Contrary to what is insinuated here, I have repeatedly asked people who wanted me not to do it ,” Schwab argued. Allegations of power abuse and workplace misconduct The whistleblower letter mentioned some issues in the WEF’s workplace culture under Schwab’s leadership. It referenced instances of unchecked sexual harassment and discriminatory behaviour, all previously reported by WSJ. “ We feel compelled to share a comprehensive account of systemic governance failures and abuses of power that have taken place over many years ,” the letter stated. In recent months, the WEF had already begun reshaping its leadership in response to earlier findings from an internal workplace culture probe. Forum CEO Børge Brende circulated a memo committing to reforms, although the earlier investigation reportedly did not substantiate claims against Schwab. The WEF board also convened an emergency meeting on Easter Sunday to address the whistleblower allegations. Schwab had requested to present his defense, but the board declined to hear him. “ He never had a chance to give his side of the story to the board or the audit committee ,” his spokesman asserted. As a gesture of goodwill, Schwab supposedly forfeited a pension worth five million Swiss francs. The board ultimately voted unanimously to open an independent investigation after consulting with external legal counsel. Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
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