The founder of the World Economic Forum fires back after accusations of economic report manipulation and questionable expenses
Klaus Schwab, the 87-year-old founder of the World Economic Forum (WEF), has responded to allegations of cooking economic reports and submitting over a million dollars in questionable expenses. Schwab, known as the architect of Davos and the WEF’s global elite gatherings, criticized the organization’s board of trustees for breaching a confidentiality agreement by allowing media outlets to learn about the accusations.
“I am in a position to refute all the accusations brought up against me,” Schwab stated in response to preliminary findings from a law firm’s investigation, ordered by the WEF’s board. The investigation revealed that Schwab allegedly manipulated the forum’s economic rankings to favor political allies and avoid controversy, and submitted expenses totaling 900,000 Swiss francs without proper justification.
Earlier this year, Schwab came under scrutiny when a whistleblower alleged financial and ethical misconduct by him and his wife. The allegations included using WEF resources for personal matters, such as private massages and luxury travel expenses.
Schwab denied some of the allegations, including paying back the WEF for in-room massages and refuted claims about luxury travel and fund withdrawals. He abruptly resigned from the WEF in April following the accusations, and a replacement has not been named yet.
The report also suggested that Schwab intervened to adjust the WEF’s Global Competitiveness Report to maintain relationships with key leaders, such as Indian Prime Minister Narendra Modi. Schwab allegedly delayed releasing rankings to avoid upsetting India and advised against boosting the UK’s ranking to avoid supporting Brexit proponents.
Despite Schwab’s defense, the WEF’s board has launched an independent investigation into the matter and plans to comment on the findings once the probe concludes in late August. The revelations have intensified the conflict between Schwab and his former colleagues, casting doubt on the future of their relationship.
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