The 87-year-old Schwab, who for decades has greeted presidents and tycoons at the annual forum in the Swiss resort of Davos, said there was "not a shadow of proof" for the accusations.

He added in a statement to the Swiss newspaper Blick that he had started defamation proceedings.

In a statement confirming a Wall Street Journal report, the WEF said its board of trustees "unanimously supported the Audit and Risk Committee's decision to initiate an independent investigation following a whistleblower letter containing allegations against former Chairman Klaus Schwab".

The longtime forum leader suddenly resigned on Monday, "with immediate effect". In a statement at the time, the WEF board hailed Schwab's "outstanding achievements" in his 55 years in charge.

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