World Economic Forum board backs launch of independent probe into founder Klaus Schwab

The World Economic Forum, which runs an annual gathering of elites in Davos, Switzerland, says its board has given its unanimous support for an independent investigation into allegations of misconduct by founder Klaus Schwab. The statement from the Geneva-based think tank and event organizer late on Tuesday came after a report published in the Wall Street Journal cited a whistleblower letter alleging financial and ethical misconduct by Schwab, 87, and his wife Hilde.

The newspaper reported that the allegations were sent in an anonymous letter to the board last week and included claims that the Schwab family mixed their personal affairs with Forum resources.

In a statement sent to The Associated Press, the Forum said its board - which includes former US Vice President Al Gore, Jordan's Queen Rania and European Central Bank President Christine Lagarde as members - agreed to a decision by its risk and audit committee to open the probe.


"While the Forum takes these allegations seriously, it emphasises that they remain unproven, and will await the outcome of the investigation to comment further," the statement said.

The AP was not immediately able to reach Schwab or a contact person for him.

The allegations emerged two days after the WEF announced Schwab had retired "with immediate effect" as chairman, and that former Nestle Chairman and CEO Peter Brabeck-Letmathe was taking over as interim chairman.

For decades, the Forum's annual gathering in Davos has hosted top business executives, government leaders, academics, international organisations, cultural figures, sports legends and celebrities to discuss government policy, deal-making and current affairs. (AP) SCY SCY