2. Background The LGSETA and Services SETA were established in terms of the Skills Development Act No. 97 of 1998 with the mandate to promote skills development for the local government and services sector respectively. The Minister of Higher Education and Training relicensed the SETAs for the five years period from 1 April 2011 to 31 March 2016, to operate within the skills development framework articulated in the National Skills Development Strategy (NSDS) III framework and other policies and strategies. The SETAs are public entities that fall under Schedule 3A of the Public Finance Management Act, No 1 of 1999 and they are funded through the 1 percent levy income paid by employers to the South African Revenue Services (SARS).