Recently, a company-paid prostitute party sponsored by Munich Re in 2007 has become public news, so the CEO answered some tough questions about the party.

The whole thing is "incredibly embarrassing for our staff," said Torsten Oletzky, the CEO of Munich RE, a Germany-based insurance company.

What's so embarrassing?

As if the party alone (100 top performers, 20 pre-paid prostitutes, a 3-person orgy show, and more details here) wasn't bad enough, the CEO is now saying that no one even remembers what happened clearly.

Oletzgy says that Munich Re is investigating what happened at the party, but it has been quite difficult to ascertain exactly what happened. Apparently everyone was so delirious (perhaps from sex, steam - the party was held in a bath house -, alcohol, or all three) that everyone remembers something different!

"There is a great deal of controversy surrounding what actually transpired in this spa. We are currently talking with many trip participants," Oletsky told Der Spiegel. "Their accounts of the events vary considerably. Regardless of the details, the event was a big mistake."

Of course we are dying to hear the other sides of story, but he declined to talk details. So for now, we must be satisfied with the details recounted last week in the story that was printed in the Handlesblatt.

According to the story, the party scene looked like this: "Between the two thermal springs a stage had been built on which two prostitutes and a man who claimed to be a pimp were pleasuring each other."

The Handlesblatt also says that the prostitutes were color-coded based on who was available for sex favors.

The top 5 performers, who were referred to internally as the "Top 5 Members," got the best deal: access to prostitutes with white bracelets AND yellow bracelets.

YELLOW bracelet = I'm available for sexual favors

I'm available for sexual favors WHITE bracelet = Sorry! Senior execs already called dibs on me

RED bracelet = I'm a hostess

The execs would take the women to curtained canopy beds where they would do whatever they wanted. The women were also stamped each time they were "used," so that the execs could tell how many of his co-workers got to her first.

When Der Spiegel asked Oletzky about these details, he declined to say much.

SPIEGEL: The party is said to have been incredibly excessive. Prostitutes reportedly wore colored bracelets because some of them were reserved for the most successful staff. There were canopy beds, and the women were stamped on the arm, like cattle, for every sex act. Is all of this true?

Oletzky: I don't want to comment on specifics because we are still investigating the details. All we can say with certainty is that this party took place on an evening during a three-day trip. Our findings to date indicate that 20 prostitutes were actually hired that evening.

SPIEGEL: Staff members told the German business daily Handelsblatt about a kind live sex act on a stage, where a man is said to have engaged in sexual activities with two women. Who organizes this kind of thing?

Oletzky: "The entire trip and the party were organized by an event agency..."

He sounds more stunned than anything else.

SPIEGEL: And why didn't you dig deeper at the time?

Oletzky: Because until only a few days ago I couldn't even imagine that something like this was possible on this kind of scale.... Believe me: This is all incredibly embarrassing for our staff -- there is nothing typical about it.