The charity has been accused of concealing the findings of an inquiry that its senior staff hired prostitutes while delivering aid in Haiti after the devastating 2010 earthquake that killed hundreds of thousands of people.
The aid workers -- including the Oxfam country director at the time, Roland van Hauwermeiren -- were accused of turning a villa rented by the organization into a makeshift brothel, with prostitutes wearing only Oxfam T-shirts.
Oxfam received about 32 million pounds ($44 million) from the government last financial year, according to public records.
In an interview with Sky News Patel said: "I did my own research and I have to say I had a lot of push-back within my own department ... that is the scandal. People knew about this."
A Downing Street spokesman said the British government had taken action to enforce a "zero-tolerance approach" to allegations of "horrific behaviour" by Oxfam staff. He gave no details on what the actions were.
According to reports, Oxfam failed to warn NGOs about the allegations, allowing some of the accused to get jobs at other aid agencies.
The UK Charity Commission said that Oxfam informed the agency in August 2011 that the charity was conducting an internal investigation related to inappropriate sexual behaviour, bullying, harassment and the intimidation of staff.
But the aid organization failed to reveal the scope and key details of the case.
Oxfam did not deny the accusations against its staff members, but it denied a cover-up, saying that it launched a swift internal investigation after it became aware of the allegations.
Four people were fired and another three resigned, including van Hauwermeiren, the charity said.
Oxfam is one of the UK's largest and most prominent aid groups, operating development programmes in over 90 countries around the world.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)