FT: Schwab hits back as WEF leak fuels power struggle and probe fallout

Key topics:Schwab accused WEF board of breaching a media gag on misconduct probeAllegations include biased rankings and $1.1m in questionable expensesSchwab denies claims, threatens legal action, and steps back from inquiry.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.The auditorium doors will open for BNIC#2 on 10 September 2025 in Hermanus. For more information and tickets, click here..By Mercedes Ruehl in Brixen, Italy.World Economic Forum founder Klaus Schwab has accused its board of breaching an agreement on media restraint tied to a probe into his conduct after excerpts of initial findings, which appeared to support some allegations against him, were published in the Swiss press.SonntagsZeitung reported at the weekend that investigators had found indications Schwab had intervened in the WEF’s Global Competitiveness Report to accommodate the political sensitivities of certain governments, and had submitted personal expenses for roughly SFr900,000 ($1.1mn) in spending that was insufficiently linked to Forum activities.Schwab said in a statement on Sunday that he had co-operated fully with the inquiry under the understanding that both sides would refrain from public comment — and that “the board of trustees is in no way honouring the agreement reached on media restraint”.“I feel deceived,” the organiser of the Davos forum added. “I am not available for further investigations.”The internal probe, launched this year and led by Zurich-based law firm Homburger, followed the emergence of an anonymous whistleblower letter containing a series of allegations against Schwab, who stepped down from his role as chair of the board at Easter.Schwab said he had participated in an interview with investigators on July 15 and was given access to a draft version of the report to respond to its contents.He reiterated his position that all accusations were unfounded and said he was “willing to defend my interests with all my strength, even in the context of a legal dispute.”The controversy over Schwab’s conduct has become an increasingly public and drawn-out struggle between the WEF and the man who founded it in 1971..Read more:.FT: Christine Lagarde tipped to exit ECB early for top role at Davos powerhouse.What began as an internal governance matter has evolved into a broader tit-for-tat dispute, marked by competing statements, legal threats and reputational fallout.Schwab, in an earlier interview with the Financial Times, described the claims as “constructed” and has filed a criminal complaint in Switzerland for defamation and coercion against his anonymous accusers.The WEF has declined to comment on Schwab’s legal action and has said it will respond more fully once the investigation concludes. It has acknowledged the seriousness of the claims while emphasising that they remain unproved.One of the main accusations in the whistleblower report involved the Global Competitiveness Report, a flagship WEF publication that ranks countries by productivity and resilience and often frames high-level discussion at its annual meeting in the Swiss ski resort of Davos. The report alleged that the report’s integrity may have been compromised by Schwab.While Schwab has denied all allegations, he has acknowledged the events of recent months have prompted personal reflection. In the interview with the FT in May, he expressed regret over some aspects of how the Forum was structured and governed but insisted his intent had always been to serve the public good.Schwab had originally intended to remain as chair until 2027 as part of a gradual transition. The current dispute, however, has upended those plans and cast a shadow over the Forum at a time when it faces growing competition from other organisations that convene meetings of the global elite, and scrutiny over its role in shaping public discourse.The public drama surrounding Schwab’s departure has also put in doubt the Forum’s succession planning. Schwab told the FT in May that Christine Lagarde, president of the European Central Bank, had discussed cutting short her ECB term to take over as WEF chair.The final results of the Homburger investigation have not yet been published.In a statement on Sunday the WEF said it would not be commenting on the recent media coverage, and that “further communication will be provided upon the conclusion of the investigation, anticipated by the end of August 2025”..© 2025 The Financial Times Ltd.

FT: Schwab hits back as WEF leak fuels power struggle and probe fallout

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