It said Oxfam's leaders had "showed a lack of judgement" in their handling of the matter and their level of openness with the government and Charity Commission.
THE British government today said it is warning all charities that receive United Kingdom aid to step up efforts to tackle sexual misconduct among staff or face having their funding cut, amid further fallout from a prostitution scandal involving Oxfam workers in Haiti in 2011.
The British charity Oxfam is under fire over accusations that some of its aid workers engaged in sexual misconduct in the aftermath of the 2010 natural disaster that devastated Haiti, and that the agency subsequently attempted to cover-up the negligent behavior, according to British officials. Among the provisions is a pledge to work with other aid organizations to overcome "the legal difficulties which have so far prevented us from sharing intelligence" with other aid agencies regarding staff members previously accused of misconduct.
United Kingdom officials have said that Oxfam needs to hand over all its information on the issue in order to not lose funding.
Groups of young prostitutes were invited to homes and guesthouses paid for by the charity for sex parties, according to one source who claimed to have seen footage of an orgy with sex workers wearing Oxfam t-shirts.
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The former Secretary of State said that "the reason why Oxfam has landed in this position is because they have not been fully open and transparent about what happened".
Ms Mordaunt said the charity had done absolutely the wrong thing by failing to tell the Charity Commission and prosecuting authorities the full details of the allegations.
Oxfam said it now had a dedicated safeguarding team, a confidential whistleblowing hotline and safeguarding contact point within countries, and a code of conduct that stipulated: "I will also not exchange money, offers of employment, employment, goods or services for sex or sexual favours".
Ms Mordaunt said the charity had also "categorically" stated to the Department for International Development (DfID) that no harm was done and beneficiaries were not involved.
The Charity Commission, which regulates the sector and will meet this week with Mordaunt, has asked Oxfam to urgently provide fresh information on the scandal in Haiti.
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I did my own research and I have to say I had a lot of pushback within my own department.
On Sunday, Mordaunt said she did not think new procedures alone would be enough to convince her that Oxfam should continue to receive public funds.
"Moreover we received positive references from former Oxfam staff-in their individual capacities-who worked with him", including from a human resources staffer, a spokesman said.
Four members of staff were dismissed and three, including the country director, resigned before the end of the 2011 investigation, Oxfam said.
Oxfam has denied any cover-up.
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