Corruption remains the biggest problem at the Home Affairs Department, Director General Mavuso Msimang said on Thursday.

"Corruption is a challenge. About 420 officials are on suspension or have been dismissed for performing undesirable activities," he told reporters at the National Press Club in Pretoria.

A new IT system had been put in place in a bid to stop this. The system was able to identify and trace which officials were issuing documents.

Recently a KwaZulu-Natal man committed suicide when Home Affairs officials claimed he was a foreigner and tore up his documents.

Msimang said the department was better now than compared to several years ago, when an intervention team was set up to turn the department around.

"The department was in total chaos before the intervention," he said, indicating lack of leadership as the key problem.

The Auditor General (AG) recently gave the department a qualified audit. Previously it received a disclaimer.

"We have over the past two years systematically addressed the pervasiveness of the issues raised in the audit report and cleaned up problem areas."

Msimang said the main issue raised by the AG related to revenue management.

"A comprehensive solution is now being rolled out..."

He explained that a new receipting engine to replace cash registers was being rolled out in 100 of the highest revenue generating offices. They were expected to be rolled out to all offices by March next year.

It would enable the department for the first time to monitor cash collection and volumes on a daily basis.

"It also allows for the integration and reconciliation of banking and accounting records electronically."

He said they were expecting a clean audit in the next financial year.