Dissertation (MA Business Administration)The main objective of this study was to examine factors for non-compliance with ethical procurement principles in the public sector in Tanzania using the procurement department in Dodoma municipal council as a case study. A cross-sectional survey method was adopted in this study where data were collected at one point at a time. Data collection was carried out through interviews, documentary reviews and the use of well structured and pre-tested questionnaires. Both primary and secondary data were collected. Qualitative and quantitative data were analyzed by using Statistical Package for Social Sciences (SPSS) and Microsoft Excel computer programmes in order to get frequencies and percentages. This study found that unethical procurement practices (non-compliance) in the procurement department in Dodoma municipal council are related to fraud, corruption, coercion and collusion. All the steps of the procurement process such as budgeting, offer evaluation, negotiation etc are potential risk areas to unethical procurement practices. Some of the factors contributing to unethical procurement practices in the procurement department in Dodoma municipal council are conflict of interest, lack of transparency in procurement, insufficient professionalism of officials, inadequate accountability and control mechanisms, direct contact with suppliers and business gifts and hospitality. The study concludes that while public procurement officers are supposed to fulfilling the procurement function for the Municipal, they are in fact the major spenders of the Municipal funds, and that public procurement officers are frequently tempted to accept gifts and prevailing double standards within the Municipal and they sometimes succumb to unethical behaviour. The purchasing environment thus creates an atmosphere conductive to unethical behaviour. This study recommends that the municipal council should use public funds according to the purposes intended. The Municipal council‟s procurement department should develop preventative measures against conflict of interest, fraud and corruption in procurement such as effective separation of duties, rotation of duties, effective supervision, custodial controls over assets and records, prevention of accumulated backlogs of work, as well as systems built-in safeguards. This can be achieved by making use of Information and Communication Technology (ICT).