Klaus Schwab and the WEF have publicly approached each other. But in the background, the conflict is already flaring up again.

Broken pieces bring good luck, as the saying goes. But putting a pile of broken pieces back together is often almost impossible.

Klaus Schwab is currently experiencing this. The founder of the World Economic Forum (WEF) abruptly lost control of his life's work at Easter. After anonymous whistleblower allegations were filed against him and his wife Hilde, the foundation's board of directors wanted to investigate them. Schwab resisted. A dispute ensued—and ultimately, a rift.

For weeks, the 87-year-old has been trying to improve his relationship with the new WEF leadership, including CEO Börge Brende and interim President Peter Brabeck-Letmathe.

In June, a truce was reached through a "mutual agreement," as the NZZ reported two weeks ago. It stated that the parties would engage in dialogue to normalize their relations and protect the forum and Schwab's legacy. This was intended to prevent a media mudslinging campaign.

However, these efforts already appear to be fizzling out, as research by the "NZZ am Sonntag" newspaper shows. In recent days, several articles have appeared in the Swiss media that portray Schwab and his standing more positively than the new WEF leadership. The business magazine "Bilanz" wrote that, according to the WEF statutes, Schwab still has the right to appoint his successor.

The "Sonntags-Zeitung" reported that there is "little" truth to the allegations against Schwab, which are currently being investigated by the Homburger law firm. The accusations of harassment against Schwab and his son have not been substantiated, nor have the allegations of financial irregularities against the Schwab couple. The investigation's verdict was only critical regarding the manipulation of the country rankings.

Numerous media outlets have picked up on the report. This caused discontent in the Geneva suburb of Cologny, the headquarters of the WEF. According to well-informed sources, the impression within the organization's leadership is that these stories were spread by people close to Schwab. This not only hinders the ongoing investigation but also violates the "mutual agreement," says one well-informed person.

Whether this allegation against Schwab is true and whether the information actually originates from his circle can neither be confirmed nor refuted. Schwab denies the allegation and states in writing that the June agreement is of "fundamental importance" to him. His communications advisor states: "Unlike other parties involved, Klaus Schwab is adhering to this agreement in every respect." He rejects all allegations made against him.

The WEF declines to comment on the matter at this time. The forum will not communicate again until the external investigation is completed and a "final agreement" is reached, the media office stated. This is scheduled for the end of August 2025.

Peter Brabeck-Letmathe, the WEF's interim Chairman of the Board of Trustees, emphasized via email: "I can only confirm that the independent investigation is far from complete and is still in full swing, and the WEF Board of Trustees has not yet received a final report on the investigation." However, the long-time Nestlé CEO declined to go into further detail.

It is a denial of the statement that Homburger's lawyers had come to the conclusion that there was "little" truth to the allegations against Schwab and his wife.

Whoever is directing Klaus Schwab's image campaign is playing a dangerous game, according to other sources close to the WEF: They consider it "risky" and incomprehensible that the allegations are now being publicly downplayed. From a communications perspective, the premature whitewashing is not in Schwab's best interest – because any investigation result that deviates from a complete exoneration would look bad for him. In fact, since the investigation began, many people have contacted Homburger's lawyers to discuss the allegations against the WEF founder.

The Homburger law firm declined to comment on this matter. They will not provide the media with any information about whether or how they are involved in this or other matters.

The investigation against Schwab and his wife focuses on three core issues: the alleged inadequate handling of allegations of sexual harassment, which were the responsibility of Schwab's son, Olivier. Lawyers are also investigating the questionable use of funds for private purposes and the manipulation of WEF studies, particularly the country rankings.

From the beginning, Klaus Schwab has vehemently defended himself against the allegations, calling them baseless. He sees himself as the victim of a campaign. But even if the Homburger investigation were to exonerate him, a return to the WEF would be a huge surprise.

The new WEF leadership apparently no longer has confidence in the founder. It's not the whistleblower allegations themselves that are crucial, but rather Schwab's handling of them.

Those in charge consider it problematic that Schwab refused to consent to the investigation into the allegations against him and instead attempted to undermine the investigation. Well-informed people today describe this as a "cardinal error."

Since then, further errors have been added. The Lagarde case is particularly serious: At the end of May, Schwab revealed in the Financial Times that he had spoken with Christine Lagarde, President of the European Central Bank (ECB), about leaving the monetary authority early so that she could become his successor at the WEF. This put the Frenchwoman in a difficult position and further lost the trust of the foundation's board.

Observers agree: The trust between Schwab and his longtime associates Brende and Brabeck-Letmathe has been severely damaged. It seems unlikely that the two will work closely together again in the future. There will be no fairytale reunion at the WEF.