The department received a qualified audit opinion based, among other things, on its revenue, irregular expenditure, leave entitlement and capped leave commitments, spokesman Simon Zwane said in a statement.

"One of the initiatives to ensure that the department receives a clean audit in the current financial year: the department has appointed a Chief Financial Officer (CFO) who assumed duties at the beginning of September 2012."

Zwane said the new CFO, Ndoda Biyela, and other senior managers would ensure there were tighter financial controls, improved contracts management and that the departments complied with the Public Finance Management Act.

The department had also appointed several other senior managers as part of its turnaround strategy, which was launched last month to ensure stability of its finances and top management.

"The plan also aims at ensuring that clinics have essential medication, hospitals do not have to contend with malfunctioning equipment, as well as proper allocation of resources," said Zwane.