Still, it's unclear whether the resignation and the apology will quell the scandal, which first emerged when the Times of London reported that seven former Oxfam staff members who worked in Haiti faced misconduct allegations that included using prostitutes and downloading pornography.
The investigation comes after the resignation of Oxfam Britain's deputy chief executive, who apologized amid reports that Oxfam staff paid for sex while working among people devastated by a 2010 natural disaster.
In a sign of corporate unease, Marks & Spencer, which has run a partnership with Oxfam since 2008 involving donated clothes worth an estimated £19 million, said the chain is monitoring how the charity is dealing with the situation.
"All I can tell you about this terrible revelation about Oxfam is that I am devastated".
"The case for the type of work done by Oxfam is too strong to allow it to be undermined by bad behaviour", he said.
Although the organization works in Haiti, it said none of its employees or funds were involved in the alleged sexual misconduct, as Oxfam Quebec operated separately from its British affiliate in 2011.
Oxfam has said that as a result of its internal investigation in 2011, four people were dismissed, and three others - including the Haiti country director who had previously held the same role in Chad - had resigned.
Depending on its outcome, the government will decide whether to stop or cut back on money given to Oxfam which in 2016-17 amounted to £31.7 million.
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"We are horrified that this kind of behaviour was done under the banner of Oxfam", she said.
British Development Secretary Penny Mordaunt has threatened to pull funding from Oxfam Great Britain if it doesn't reveal everything it knows about the Haiti allegations.
"If the moral leadership at the top of the organization isn't there, then we can't have [Oxfam] as a partner", Mordaunt told the BBC Monday ahead of a meeting with the organization's leaders.
In a statement, Oxfam Quebec said it was shocked and outraged by the Haiti allegations.
While acknowledging that most of those working in the global development sector "do so in a diligent and appropriate manner", he added: "The Scottish Government will not hesitate to take appropriate action whenever we suspect that any abuse has occurred, and we expect the same commitment from those working with us".
She added: "In light of these allegations, we will be reviewing our association with Oxfam as a participant volunteering provider".
It hurts me very deeply.
Speaking in the Swedish capital Stockholm, the minister issued a stern warning to the charity that its Government funding could be at risk over its handling of the allegations.