The Adamawa State High Court, sitting in Yola, has sentenced Grace Andreas Karka, Managing Director of Bonghe Microfinance Bank, to five years’ imprisonment for her involvement in a N32 million fraud.
The conviction was delivered by Justice Benjamin Lawan Manji, who found Karka guilty on two counts of criminal conspiracy and cheating, offences brought against her by the Economic and Financial Crimes Commission (EFCC).
The EFCC, in a statement on Thursday, said the case was investigated and prosecuted by its Gombe Zonal Directorate following a petition from the management of Bonghe Microfinance Bank over suspicious transfers from its accounts.
According to court records, Karka, while serving as the bank’s managing director between August 2020 and March 2021, conspired with one Prince Moses Batalu to divert funds belonging to the institution.
Investigations revealed that she moved N32 million from the bank’s First Bank account without proper authorisation or board approval, transferring the funds to Batalu, who was not a customer of the bank.
An internal audit later uncovered the irregular transactions and an imbalance in the institution’s account records. All attempts to recover the funds reportedly failed, prompting the bank to alert the EFCC.
The anti-graft agency subsequently filed a two-count charge against Karka in 2024 under Section 61(2) of the Adamawa State Penal Code Law, 2018.
“That you, Grace Andreas Karka, and Prince Moses Batalu, between August 2020 and March 2021 in Yola, Adamawa State, within the jurisdiction of this Honourable Court, did agree among yourselves to commit an illegal act to wit: theft of N66,792,960 from Bonghe Microfinance Bank Nigeria Limited and dishonestly moved the said sum without necessary approval.”
Upon her arraignment on November 11, 2024, Karka pleaded not guilty, leading to a full trial.
During the proceedings, the EFCC’s counsel, Mubarak Tijani, presented multiple witnesses and tendered documentary evidence to support the prosecution’s case.
The defence, however, called three witnesses in its attempt to disprove the allegations.
Delivering judgment on October 17, 2025, Justice Manji ruled that the prosecution had proven its case beyond reasonable doubt, and consequently convicted the defendant on both counts.
“The evidence before this court clearly establishes a deliberate act of dishonesty and conspiracy to defraud,” the judge held.
Karka was sentenced to five years in prison on each count, with an option of N3 million fine per count. The sentences are to run concurrently.
Additionally, the court ordered her to restitute N29.8 million to the petitioner, representing the outstanding balance of the stolen funds.
The EFCC described the judgment as a “victory for accountability in the microfinance sector,” stressing that it would continue to monitor fraud cases involving financial institutions, especially where insider collusion is suspected.
The Commission also reminded operators in the sector to maintain strong internal controls and compliance frameworks to prevent financial misconduct.
“This conviction should serve as a warning to bank executives who abuse their positions of trust.
The EFCC remains committed to protecting depositors’ funds and ensuring integrity in the financial system,” the agency stated.
