Housing Finance Bank Sacks Top Manager In Unauthorized Currency Trading Scandal

By Our Reporter

Housing Finance Bank (HFB) is tightening its grip on internal compliance following sustained pressure from the Bank of Uganda (BoU) to address governance lapses and strengthen oversight in treasury operations.

Last week, HFB’s top management convened an emergency meeting to deliberate on the fate of Robert J. Nyamungani, the bank’s former treasury manager, after an internal investigation linked him to unauthorized foreign currency trades and irregular transactions.

Nyamungani, who was responsible for managing the bank’s treasury portfolio, reportedly engaged in currency dealings outside the bank’s approved scope, including the Indian rupee and the Tanzanian shilling. Three major transactions linked to his office triggered a combined loss of UGX 6 billion, according to internal audit findings.

The report further indicated that the funds were funneled through the bank’s foreign exchange systems without being properly hedged or recorded on the official balance sheet. The investigation also named three companies—Zigoy, Deritage Index, and Zenken Ltd—as collaborators in the transactions.

While some executives argued that Nyamungani should be allowed to resign quietly to avoid damaging his career prospects, the majority opted for outright dismissal to send a strong message against misconduct. “Allowing such breaches to go without severe consequence would undermine the compliance culture we’re working to build,” one insider said.

Although referral to police and prosecution under the Director of Public Prosecutions (DPP) was considered, the proposal was dropped in what some sources described as a “humanitarian decision,” citing Nyamungani’s young family.

HFB’s action comes against the backdrop of repeated warnings from the BoU over the need to seal loopholes that could expose the bank to operational risks and reputational damage. The regulator has been pushing for stricter monitoring of treasury operations across the sector to guard against similar incidents.

With this high-profile dismissal, HFB hopes to reassure regulators, shareholders, and customers that it is committed to transparency and sound banking practices.