'Oxfam has been plunged into further chaos after the chairman of its international arm was arrested as part of a corruption investigation.
Juan Alberto Fuentes Knight, chair of Oxfam International’s board of supervisors, was detained in Guatemala amid a widening scandal in the UK over the alleged use of prostitutes and sexual exploitation by staff.
Dr Fuentes Knight, a former finance minister in the country, was held alongside the country’s former president as part of an investigation into a public bus deal.
Oxfam International’s executive director, Winnie Byanyima, said that no formal charges had yet been announced.
She added: “He has been entirely open with his Oxfam board and executive that he has been among former officials being investigated as part of a budgetary transaction made by the Guatemalan government while he was finance minister.
“He has assured us that he has cooperated fully with the investigation in the confidence he did not knowingly transgress rules or procedures.”
The investigation increased pressure on the charity as the British Government suggested it was considering pulling public funding over abuses by staff and Oxfam’s alleged failure to properly respond.'
Read more: Oxfam scandal: International chairman arrested in Guatemala corruption probe as pressure over sex allegations intensifies
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