A Dissertation Submitted to the School of Business in Partial Fulfillment of the
Requirement for the Award of Master Degree of Procurement and Supply
Chain Management (MSc. PSCM) of Mzumbe University
The aim of this study was to identify factors affecting the practice of asset disposal in
five selected public procuring entities in Mwanza City. Specifically, the study aimed
to assess whether the disposal policies are followed, assessing the effect of
depending on higher approving authority on disposal activities, also identifying the
challenges PEs’ face on the choice of disposal methods and identifying the risks and
measures that should be taken by procuring entities for the effective disposal in
public sector organization. Questionnaires and interview guide were data collection
methods. The research employed the mixed research design (follow up explanation
design) with 120 sample of respondents selected by using simple random and
purposive sampling techniques. Data collected were analyzed both qualitatively and
quantitatively by use of Descriptive statistics and multiple regression analysis
through the help of SPSS version 20. The study result shows that, selected PEs have
ever used tender method to dispose asset despite of being recommended in the PPA
of 2011 and its Regulations and amendments however, procuring entities does not
fully comply with PPA and its regulations. Also the study revealed that, lack of clear
policies for disposal contributes much to the challenges affecting effective disposal,
depending of higher approving authority results to delays and long procedures. From
the study findings it was also revealed that, challenges associated with methods of
disposal selection and risks associated with disposal were statistically significant
affecting the practice of disposal of asset. Hence, the results provided that, achieving
effective asset disposal the PEs should have the enough budgeted funds, clear
policies and procedures to minimize unnecessary disposal interference and records
should be maintained for effective disposal of asset. Therefore, it is recommended
that, policies and public disposal act must be formulated and should have principles,
procedures and objectives which promote effective disposal and focus on achieving
value for money disposal in public sector organizations. The PEs must have the risk
management plan for controlling and mitigating risks related to disposal of asset for
the management of disposal in public sector organizations.