OXFAM was released with a warning about his Haiti sex scandal even though a girl was raped at the age of 12.
The Charity Commission found serious allegations of misconduct and said Oxfam endangers children.
However, it was decided that the charity was guilty only of "corporate failure" and that no individuals should be held accountable.
The Commission conducted an 18-month investigation into allegations that Oxfam employees sexually exploited the 2010 earthquake victims in Haiti.
It turned out that some Oxfam helpers had sex with prostitutes in their own offices and the organization had no idea if some of the girls were underage prostitutes.
The evidence included an e-mail from a 13-year-old girl who said she had been "beaten and abused" by two Oxfam workers. She added, "You also have a boss who works for you, and I have not met him yet, but my young friend, she's 12, had sex with him."
Oxfam declined the email because the girl had used Google Translate. They were seen by the then head of the charity, Dame Barbara Stocking.
The watchdog said Oxfam should have reported the allegations to the police and "should not take the risk with the safety of minors." The Commission found no evidence of a cover-up and issued a "company penalty".
However, ex-Aid secretary Priti Patel said, "This devastating report reveals Oxfam's utter failure to protect girls from predatory pedophiles."
Oxfam GB Caroline Thomson said, "What happened in Haiti was shameful and we are very sorry."
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The report also found that 16 teenagers in British stores had been victims of error protection, most of them with sexual misconduct.
The report calls for protective measures to be improved to ensure that children are not harmed in the future.
The charity commission gave Oxfam three weeks to carry out radical reforms or threaten the loss of hundreds of millions of taxpayers' money.
THE SUN SAYS: OXFAM SHAME
The exit for Oxfam beggars.
These defenders of the poor have hushed up the sexual abuse of children by helpers, so that donations continue to be made.
They tolerated "a culture of bad behavior," according to a report by the Charity Commission.
What is her penance? A warning. Nobody is picked out or fired.
Oxfam "reforms" and continues. And the public should be reassured.
What a whitewash.