Posted originally on Apr 26, 2025 by Martin Armstrong 

World Economic Forum founder Klaus Schwab is under an internal investigation by the organization he created. There is no question that it has been alleged that the WEF got money from USAID. Exactly how much is hard to say for sure. It has been alleged to be in the tens of millions. Yet here we suddenly have an anonymous whistleblower sending a letter alleging financial and ethical misconduct by the longtime leader and his wife. The strange thing here is that it is either anonymous, or they are hiding the names of current and former Forum employees. Schwab’s management style was always authoritative, based on allegations, and he did not tolerate mistakes. That raises the possibility of disgruntled “former” employees.

This sudden internal investigation, when DOGE is uncovering abuses in funding things at the USAID, is the hallmark of an internal coup. If these people were with Schwab for years, why would they suddenly take a purely anonymous letter as having any credibility? They should know him personally and his character. My sources, which are very reliable, suggest from third parties inside the WEF that the allegations are false.

Something like this would never be acceptable in any court of law, especially if it’s anonymous. It would be the worst or the worst hearsay, where you cannot even point to who made the allegation. Klaus Schwab rejects the whistleblower allegations, yet he has been banned from even entering the WEF premises in Geneva. Interim President Peter Brabeck-Letmathe and CEO Börge Brende have taken over, and this does not appear to be on the up and up. My sources have explained that events escalated on Wednesday. After the Board publicly announced an investigation into its resigned president, Schwab launched a counteroffensive.

The WOKE agenda that the WEF promoted has lost all credibility in the wake of Trump’s victory. That has unfolded as a contagion, and we are witnessing the right rise up everywhere. In Germany, the AfD is now the largest party, and in Britain, Nigel Farage’s Reform Party is also now NUMBER #1. This is a coup also to try to change the image of the WEF away from the crazy left, you will own nothing and be happy, to a more authoritarian position of world dominance. This is why they are deliberately trying to destroy Schwab’s reputation, and this whistleblower may even be a staged event.

Yes, our computer had forecast that the WEF would enter a declining trend with the 2024 ECM turning point. This staged coup to try to save the WEF has come about 37 years after the first Davos meeting (8.6 x 4.3). From our model’s perspective, this was right on time.

USAID CONNECTION:

Then there is the USAID connection. As far as USAID and what I have been able to confirm, they did collaborate with Schwab’s World Economic Forum on specific initiatives, but there is no evidence of direct, broad institutional funding from USAID to the WEF. What appears to be fact is that USAID and the WEF have partnered on projects aligned with shared goals, such as economic development, climate resilience, and public-private partnerships. For example, they have worked together on initiatives like the Food Innovation Hubs and efforts to promote sustainable agriculture. These collaborations often involve coordination with private-sector actors and other stakeholders, rather than direct financial grants to the WEF itself.

The WEF primarily relies on membership fees from corporations and foundations, as well as participation fees for its annual meeting in Davos. USAID’s involvement typically supports specific programs or co-hosted events rather than the WEF’s general operations. Searches of U.S. government spending databases (e.g., USASpending.gov) do not show significant direct contracts or grants from USAID to the WEF. Any financial interactions would likely be tied to discrete projects or events.

Both organizations have acknowledged their collaborations in press releases and reports. For instance, USAID has highlighted joint efforts with the WEF on initiatives like digital inclusion and disaster response, emphasizing leveraging private-sector resources.

Consequently, there is a decline in the WOKE Agenda 2030 and the USAID /  WEF programmatic partnerships, with potential DOGE investigations, throwing Schwab under the bus seemed the only way out, trying to save the WEF from a larger scandal. However, I am not aware of any direct institutional funding from USAID to the WEF at this moment. Their cooperation appears to be project-specific, aimed at advancing shared development goals through multi-stakeholder engagement. Some wonder if this funding, which is under investigation, also played a key role in this urgent crisis, leading to Schwab being thrown under the bus and even banned from the premises.

Based on this, an anonymous letter was sent last week to the Forum’s board, raising concerns about the Forum’s governance and workplace culture. According to the letter, it alleged that the Schwab family had mixed their personal affairs with the Forum’s resources without proper oversight. While that is not so far-fetched insofar as it is a fairly common issue that has been alleged countless times, as with Marine Le Pen in France, claiming some local expenses were paid with EU funds.

The outlandish allegations are that Klaus Schwab asked junior employees to withdraw thousands of dollars from ATMs on his behalf and used Forum funds to pay for private, in-room massages at hotels. That does not seem plausible. If he were taking cash, he wouldn’t hire employees to do that. Plus, any in-room massage is typically billed to the hotel room, not paid in cash. The letter alleged that his wife, Hilde, would schedule “token” Forum-funded meetings in order to justify luxury holiday travel at the organization’s expense. This is again hard to prove. Did she hold a meeting in Paris so she could also go shopping? Or was there a meeting, and in her spare time, she went shopping? These are not allegations that warrant banning him from the premises and destroying his reputation.

At an emergency meeting on Easter Sunday, April 20, 2025, Klaus Schwab stepped down as Chairman and Board member of the World Economic Forum, effective immediately. He said publicly:

“Following my recent announcement, and as I enter my 88th year, I have decided to step down from the position of Chair and as a member of the Board of Trustees, with immediate effect.” 

The board said that according to the rules, they “unanimously appointed Vice Chairman Peter Brabeck-Letmathe as Chairman ad interim. It also established a Search Committee for the selection of a future Chair.” The Board on Sunday expressed its gratitude for his 55 years of relentless leadership at the helm of the Forum, said WEF. They added:

“At a time when the world is undergoing rapid transformation, the need for inclusive dialogue to navigate complexity and shape the future has never been more critical. The Board of Trustees of the World Economic Forum underlines the importance of remaining steadfast in its mission and values as a facilitator of progress. Building on its trusted role, the Forum will continue to bring together leaders from all sectors and regions to exchange insights and foster collaboration.”

What’s strange is that the board of trustees decided to open an investigation during an emergency meeting on Easter Sunday. By Wednesday, they are throwing him under the bus and destroying his reputation. He will forever be labeled a fraud, regardless of the facts, since the media will pronounce him guilty without a trial. The Board insists that Schwab opted to resign immediately as the chairman, instead of staying on for an extended transition period as previously planned. He has naturally denied every allegation hurled at him since. No doubt, Klaus Schwab will file a lawsuit against whoever is behind the anonymous letter and “anybody who spreads these mistruths,” his spokesman said.

In a statement, the WEF said its board unanimously supported the decision to initiate an independent investigation “following a whistleblower letter containing allegations against former Chairman Klaus Schwab. This decision was made after consultation with external legal counsel.”

I am no fan of Klaus Schwab, as everyone knows. I disagree with his theories from start to finish. Nevertheless, something doesn’t smell right here. This appears to be an internal coup, perhaps to distract attention from the question of alleged funds for the WEF from USAID, or to try to salvage the collapse in support due to the failure of Schwab’s Agenda 2030. The political wind has shifted. They are not stupid.

No definitive comparison can be made between 2024 and 2025 attendance until official data is released after the events take place. Any analysis before then would be speculative, relying on broader trends or announcements from the WEF. Nevertheless, the perception was that many people skipped the event as the Trump victory was essentially driving a stake through the heart of the WEF Agenda 2030.

The Forum conveniently said that it takes:

“these allegations seriously, but they remain unproven, and will await the outcome of the investigation to comment further.”

The letter also raises concerns about how Klaus Schwab treated female employees and how his leadership over decades allegedly allowed instances of sexual harassment and other discriminatory behavior to go unchecked in the workplace, allegations that were raised in a Wall Street Journal article and previously investigated by the Forum. The Forum disputed the Journal’s
reporting at the time, and Schwab denied the allegations against him. When they weren’t to stage a coup, everything was used to completely destroy Schwab’s reputation and his life’s work, for that appears to be the goal. The Board now said:

“We feel compelled to share a comprehensive account of systemic governance failures and abuses of power that have taken place over many years under the
unchecked authority of Klaus Schwab.”

There was also a previous board probe into the workplace culture of the organizer of the annual Davos conferences in recent weeks. In a recent memo, Børge Brende, the Forum’s CEO, said the Forum would take steps to address the leadership issues identified by the previous probe and that the investigation did not substantiate the allegations against its founder. This has the appearance of trying to salvage the Davos events and high membership fees after what may have been a sharp decline in attendance last January.

This decline in attendance may have been the real reason behind Schwab’s previous statement that he would step down as non-executive chairman of the Forum’s board, and the Forum said the succession process would be completed by January 2027. The rise of the right and the apparent collapse of Agenda 2030 most likely prompted that statement. Still, they may have decided that they needed a scorched earth strategy and staged this anonymous whistleblower letter to blow up that timeline. What sources have said was that trust between the board and Schwab had been deteriorating since the 2025 Davos meeting

The World Economic Forum (WEF) and its founder, Klaus Schwab, are often subjects of public discourse, particularly regarding their influence on global policies, such as the Great Reset, and initiatives discussed at the annual Davos meetings. While there isn’t a single definitive “poll” universally referenced, respect for the institution has also often become the topic of jokes, much as Goldman Sachs was during the Great Depression in Vaudeville. I have pointed out that they speak only in fundamental terms, which are always WRONG because they think influence works and manipulating the world economy is the answer. The Davos attendees couldn’t see the 2008 crisis coming. The unreliability of their predictions has been legendary. People pay huge fees only to meet politicians in hopes of gaining influence. It has always been a high-stakes game that does not control the world any more than it can prevent its own decline.

One allegation raised in the letter is the Schwab family’s use of Villa Mundi, a luxury property purchased before the pandemic by the Forum, next to the organization’s headquarters in Geneva. It was renovated over several years and opened as a meeting and conference center in 2023. The allegation of this whistleblower claims that Hilde Schwab maintains tight control over use of the building and that portions of the property are understood to be reserved for private family access; the Schwabs deny the claim. This is the level of pettiness that seems to be more interested in a character assassination in hopes of saving the WEF from its cyclical decline.

Hilde Schwab oversaw renovations to the property, while the refurbishment incorporated materials such as recycled glass and fishing nets, according to local news reports. The upgrades cost $20 million in addition to the $30 million cost for the property. The spokesman for the Schwabs stated that they live near Villa Mundi and have used it only for Forum-related events. Hilde Schwab said,

“The building is a role model for sustainable architecture, which is dear to my heart, and I was glad to show it to people who expressed interest.”

This is net-picking for a distinct purpose. Over the weekend, Schwab told board members that the whistleblower allegations were unfair and inaccurate, and he sought a chance to address the board during its Sunday meeting. The board decided against that, and did not allow Schwab to answer the allegations, which in itself is certainly not Due Process. Even the Sixth Amendment to the US Constitution guarantees your right to confront your accuser. The WEF would not allow Trump even to respond. This smells of a setup, and I disagree with Schwab professionally, but this was like a medieval trial of the Spanish Inquisition. Schwab was even stripped of his 5 million Swiss franc pension.

Schwab’s leadership was marked by divisive initiatives like the Great Reset and the Fourth Industrial Revolution, which critics call dystopian and pro-centralization. The WEF’s 2016 slogan — “Welcome to 2030: I own nothing, have no privacy…” — further fueled concerns about eroding personal freedoms. The Forum immediately appointed Peter Brabeck-Letmathe, the former Nestlé CEO, as the interim chairman and established a search committee for the future chair’s selection. Was this simply a coup for political purposes to discredit Schwab and every aspect of his Fourth Industrial Revolution and Agenda 2030? This is clearly a coup in a desperate attempt to save the WEF from failure when it has NEVER been able to forecast anything – EVER!.

Brabeck-Letmathe’s appointment raised fears of heightened corporate globalization. The new chair’s past comments — declaring water a commodity, not a human right — and Nestlé’s contested water policies signal continuity of WEF’s resource-centralization goals. Critics argue his leadership prioritizes profit and technocratic control over public welfare. Conservative voices framed Schwab’s exit as damage control, warning that Brabeck-Letmathe’s ties to corporate exploitation (e.g., water privatization) reveal the WEF’s unchecked agenda. Upcoming battles over digital ID systems, carbon credits, and autonomy loom as scrutiny intensifies.

While I disagree with Schwab’s Great Reset and Agenda, I must still look at this dispassionately. This is a desperate coup to save a failing WEF in the face of the decline and fall of extreme LEFTIST policies.