Premier Alison Redford says if Alberta Health Services hadn't dealt quickly with the expense scandal, the government would have.

"We can't allow this sort of conduct to happen," she said in an interview with CBC News on Friday. "It's entirely inappropriate."

Allaudin Merali was fired as chief financial officer with AHS after a CBC News investigation revealed he charged almost $350,000 to taxpayers for lavish dinners, bottles of wine and repairs to his luxury car while he was with Capital Health between January 2005 and August 2008.

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Premier Alison Redford said she's disappointed by the expense scandal. (CBC)

Former Capital Health CEO Sheila Weatherill, who signed off on Merali's expenses, resigned as an AHS board member on Thursday.

Redford called the revelations disappointing.

"I am pleased to see that the right decision was taken with respect to terminating the employee and that the board member chose to leave," she said.

"My view is that if those two things hadn't happened, we as government would have stepped in and ensured that the same result was delivered."

Redford spoke with CBC News from her business trip at the London Olympics.

Health Minister Fred Horne said that the guidelines for Alberta Health Services are stricter than the rules followed by Capital Health.

AHS has asked the auditor general to examine its current policies.