Published on 11/08/2025
Housing Finance Bank (HFB) is facing a deepening crisis after internal investigations revealed a Ugx. 6 billion loss tied to unauthorized foreign currency trades carried out within its treasury department.
The scandal has triggered urgent questions about the bank’s governance, risk controls, and compliance with central bank regulations.
The revelations emerged last week during a high-stakes crisis meeting, where top executives voted to sack Treasury Manager Robert J. Nyamungani over his alleged role in bypassing approved trading protocols.
Investigators found that Nyamungani executed deals in currencies HFB is not licensed to handle including the Indian rupee and Tanzanian shilling without hedging or recording the transactions on the bank’s balance sheet.
Audit documents link the trades to three external entities Zigoy, Deritage Index, and Zenken Ltd via HFB’s foreign exchange systems. The funds involved reportedly never appeared in the official statements for the trading period under review, further deepening concerns about the bank’s internal oversight.
While some executives pushed for the matter to be referred to the police and the Director of Public Prosecutions, that move was abandoned in favor of allowing Nyamungani a private exit from the criminal justice process. However, the bank opted for dismissal to signal seriousness to regulators and the public.
The Bank of Uganda has previously warned HFB about weaknesses in internal controls and risk management.
This latest scandal now threatens to erode customer trust and could draw closer scrutiny from regulators. Analysts say the incident underscores the systemic vulnerabilities that can occur when treasury operations are left without rigorous oversight.
As the fallout unfolds, HFB faces the challenge of reassuring clients, regulators, and investors that it can tighten controls and prevent future breaches of operational integrity.
