The UK's charity watchdog has launched a statutory inquiry to look into claims by The Times that Oxfam tried to cover up the findings of an internal investigation that found that aid workers had held sex parties with girls during the humanitarian relief mission.
Ms. Lawrence accepted "full responsibility" for the staff's action when handing in her resignation.
Watch her interview at the top of the page.
The hardening stance follows reports in The Times that young sex workers were hired by Oxfam's senior staff in Haiti after the 2010 quake which devastated the island and left up to 300,000 people dead, and that the UK-based charity tried to cover up the scandal at the time.
Mercado said the organization welcomes the scrutiny and Oxfam treats this as a wake-up call to improve in their work.
Haiti's Ambassador to the U.K. Bochitt Edmond tells NPR's Morning Edition that his government "is willing and getting ready to take legal action against individuals" involved in the scandal - possibly van Hauwermeiren and implicated members of his staff.
"I am nothing short of horrified by the allegations against Oxfam International".
"There is nothing more shameful than a sexual predator using the veil of catastrophe as a means to exploit the vulnerable in their most defenseless moments", he said in a statement.
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Former Deputy Chief Executive Penny Lawrence also resigned on Monday as the scandal continued to grow.
Haiti's minister of planning and external cooperation, Aviol Fleurant, said on Wednesday he had summoned Oxfam representatives to a meeting on Thursday to discuss "serious sexual crimes".
"These would be both serious sexual crimes and a crime against development in light of the potential diversion of external assistance for the objective of illegal criminal activities", the minister, Aviol Fleurant, told Reuters.
Oxfam said it could not find records on its recruitment of van Hauwermeiren but its policy at the time was to get two references including a former employer.
Oxfam officials in Haiti were not immediately available for comment during the country's carnival holiday.
Talking about how charities receiving United Kingdom aid have been told to show "full transparency", Penny Mordaunt said: "If our standards are not met, then the British taxpayer will not continue to fund them".
A spokesman for Oxfam International - the umbrella group for 20 national and regional affiliates - said Fuentes "maintains his innocence" and is cooperating "fully with the investigation".
The scandal has bolstered critics of Britain's commitment to spend the equivalent of 0.7 percent of economic output on foreign aid.
Fearing that not every detail of the #Haiti accusations have been "disclosed" by the charity, the #Charity Commission in the United Kingdom has launched an inquiry into the organisation in an attempt to figure out if they covered up previous allegations.