It has recently emerged that officials at the charity, including executive director Philippe van den Bossche, were ousted in October.
Trevor Neilson of the Global Philanthropy Group, which Madonna recruited last year, revealed that $3.8 million (£2.4 million) had been spent on a 400-capacity school for girls that will now never be built, reports the New York Times.
He said that not all the money has been accounted for. In a report for the company he accused the former charity workers of “mismanagement” and of having a “lack of oversight”.
“The project has not broken ground, there was no title to the land and there was, over all, a startling lack of accountability on the part of the management team in Malawi and the management team in the United States,” he said.
Madonna issued a statement saying that despite the school plan being scrapped the charity would continue to operate. A caretaker board, of which she is a member, has taken control of it.