- An initial inquiry into Klaus Schwab, the creator of the World Economic Forum, uncovered over $1 million in suspicious expenditures.charged to WEF and various other significant violations and issues related to academic integrity.
Klaus Schwab, the creator of theWorld Economic Forum, is at the heart of an escalating controversy following initial results from an internal investigation into claims of improper expenditures, workplace misconduct, and tampering with critical research documentswere leakedto various media organizations. The inquiry regarding Schwab, initiated earlier this year following reports from whistleblowers, has the potential to damage the WEF leader’s reputation and the standing of the organization he headed for more than 50 years. Initial results from investigators revealed over $1 million in questionable charges attributed to the WEF by Schwab, as well as multiple issues concerning personal behavior and ethics.
Schwab, who founded the WEF in 1971 and turned Davos into a center for elite global networking and diplomacy, resigned from his position as board chair in April due to pressure from whistleblower allegations. He had beenexpected to stay on until 2027.
The investigation, carried out by the Swiss legal firm Homburger and reportedly monitored by the WEF’s board of trustees,reported an increase of more than $1.1 millionIn disputed travel costs submitted by Schwab and his wife, Hilde, several of the charges included first-class flights for business related to the Forum. Hilde, nevertheless, does not hold an official position within the organization and was reportedly just traveling with her husband.
Authorities also observed around $63,000 set aside for Schwab’s travels to Venice, Miami, the Seychelles, and other high-end locations. The latest of these journeys was a seven-day visit to Morocco, taking place from late December 2024 through early January 2025. These particular travel costs allegedly showed minimal or no link to the Forum.
In addition to travel expenses, investigators discovered that 14 hotel massages were charged to the Forum using Schwab’s corporate credit card or those of junior staff, as reported byThe Wall Street JournalThe report stated that Schwab later covered approximately half of these services. However, Schwab is said to have consistently told his assistants to charge him for the massages.
Authorities also observed that Schwab and his wife utilized a driver funded by the WEF during specific trips and charged the organization for their landline and the mobile phone used by their maid in Geneva. Additional perks received by the couple were recorded as expenses by the WEF but not included on their income statements, according to the investigation.
A representative from Schwab statedthe Journalthat Schwab’s driver also served as a security measure and was implemented to reduce possible security threats. Regarding the phone plans, the spokesperson stated theJournalThese costs were reasonable considering the amount of work and WEF-related events held at Schwab’s home.
Additional issues arose from work carried out on a high-end property owned by the WEF known as Villa Mundi, situated on Lake Geneva in Switzerland. According to investigators, the Schwabs engaged a design company they had previously used in 2019 to carry out expensive renovations on the property’s interior. Furthermore, they claim that Hilde primarily utilized the WEF property for personal purposes, as discovered by the investigators. The Schwabs reportedly denied overseeing the interior design project or using the building for private functions.
The report also outlined various gifts reportedly received by Schwab, such as Russian tea sets, personalizedTiffanyButtons and fur coats, claimed to be against the organization’s guidelines.
In a statement released by a representative to the Journal, Schwab denied any misconduct, referencing a long-standing “good-faith agreement” between the Forum and the Schwab Foundation—a related non-profit organization led by his wife—to support certain expenses. He stated that he relied on his staff to distinguish personal travel costs from those associated with his professional duties, and pledged to repay any expenses classified as personal once the investigation is completed.
Regarding the gifts, a spokesperson for Schwab mentioned that the founder of the WEF donated the majority of the gifts to charity and exhibited some others, including the Russian tea sets, at the WEF’s headquarters. Schwab stated he could not specifically remember the other gifts mentioned by investigators.
“Throughout this journey, Hilde and I never utilized the Forum for personal gain,” Schwab stated in a written message tothe Journal.
Following the initial details of the inquiryfirst surfacedin the Swiss media on Sunday, Schwab criticized the WEF board ofviolating an agreementto maintain the secrecy of the inquiry, stating, “I feel betrayed. I am not available for additional investigations,” as per a statement released tothe Financial Times. He mentioned that he had fully collaborated with the investigation and promised to protect his reputation “with all my power, even within the scope of a legal conflict.”
The WEF’s board of trustees did not explicitly comment on the investigation’s results, but recognized the gravity of the allegations in a statement toMathHotels.com.
The Board of Trustees of the World Economic Forum strongly rejects the inappropriate actions related to the inquiry into the claims raised by whistleblowers against Klaus Schwab,” WEF stated to MathHotels.com. “The Board of Trustees highlights the significance of an investigation conducted by a legal firm that is independent of external pressures. The Board of Trustees will be solely in charge of reviewing and analyzing the findings of the investigation. The Board of Trustees will not be influenced by rumors or media interpretations but will depend entirely on the facts uncovered during the investigation.
Homburger is scheduled to finish the investigation and present suggestions to the WEF’s board of trustees by the end of August, the sametime framewhere invitations for the 2026 Davos summit will be distributed.
This narrative was first published onMathHotels.com
