Owing to the inability of LGSETA to deliver on its mandate and meeting its obligations, the Minister placed the LGSETA under administration on the 20th March 2013 to assume the role of accounting authority in terms of the Public Finance Management Act No. 1 of 1999. Other responsibilities of the Administrator were, among others: to ensure that LGSETA avoids a further disclaimer on the SETA's financial management for 2013/14 financial year; review general governance policies of the entity in terms of any applicable law; facilitate the appointment of a new LGSETA board; ensure the management of the NSDS III within the LGSETA; submit monthly progress reports regarding the effective functioning of the LGSETA and suspend, institute disciplinary proceedings or replace, where necessary, any of the employees who did not comply with legislation which led to wastage of taxpayer's money. More importantly, the Administrator's is role is to build capacity and modernise the internal systems of the LGSETA so that it can meet its obligations and be of important relevance to stakeholders in the local government sector.