Peter Hartz may have gotten the hook. But he won't have to pay for the hookers, says a German magazine.
Volkswagen has decided not to press former personnel chief Hartz to pay back money he is alleged to have spent on prostitutes and kickbacks for members of the automaker's works council, according to Focus magazine.
In a story last fall in the German magazine Stern, former VW personnel executive Klaus-Joachim Gebauer told of arrangements he made for Hartz and works council members to win support for VW management proposals. German prosecutors are investigating to determine if fraud charges are warranted.
The scandal, which made headlines in Germany last summer, forced Hartz and VW works council chief Klaus Volkert to resign. Gebauer was fired.
Rather than seeking restitution from Hartz, the automaker is expected to get around $5.8 million from an insurance policy that covered VW's directors and officers, the magazine said. VW isn't talking.