Grace Andreas Karka, Managing Director of Bonghe Microfinance Bank, has been sentenced to five years in prison for fraud involving N32 million. The EFCC prosecuted Karka, revealing unauthorized fund transfers and criminal conspiracy.
Justice Benjamin Lawan Manji of the Adamawa State High Court has delivered a verdict of five years’ imprisonment for Grace Andreas Karka, the Managing Director of Bonghe Microfinance Bank, on charges of fraud. This sentencing stems from a prosecution initiated by the Economic and Financial Crime s Commission ( EFCC ), Gombe Zonal Directorate.
The charges against Karka encompassed two counts: criminal conspiracy and cheating, with the fraudulent activities involving a substantial sum of N32 million. The EFCC’s investigation and subsequent legal proceedings have brought to light a significant breach of trust and financial misconduct within the microfinance institution. This case serves as a crucial reminder of the importance of financial integrity and the rigorous enforcement of laws designed to protect depositors and maintain the stability of the financial system.
The conviction reflects a strong stance against financial crimes, sending a clear message that such offenses will not be tolerated and will be met with severe consequences. This legal action underscores the commitment of the authorities to combat financial irregularities and protect the financial wellbeing of the public. The details surrounding the case also shed light on how institutions must strengthen their internal controls and oversight mechanisms to prevent similar fraudulent activities from occurring in the future.
The EFCC’s case detailed that between August 2020 and March 2021, Karka, in collusion with Prince Moses Batalu, engaged in a scheme to unlawfully transfer funds totaling N66.7 million from the bank’s account held at First Bank Nigeria Limited. These transfers were conducted without the necessary authorization, violating Section 61(2) of the Adamawa State Penal Code Law, 2018. The actions of Karka and Batalu represent a significant violation of banking regulations and a blatant disregard for established financial protocols. Their actions not only caused financial losses for the institution but also undermined the public trust placed in the microfinance bank.
Despite the gravity of the charges, Karka initially pleaded not guilty when she was arraigned on November 11, 2024. This prompted a comprehensive trial during which the prosecution presented compelling evidence, including witness testimonies and relevant documentation. The thoroughness of the investigation and the presentation of evidence were critical in demonstrating the depth and complexity of the financial malfeasance involved in the case. The prosecution’s ability to build a strong case against Karka highlights the importance of robust investigative capabilities within the EFCC and the importance of thorough financial auditing of all banking institutions.
The process of gathering and presenting the evidence showed a well-orchestrated effort to uncover the truth and ensure that justice would be served. \On October 17, 2025, Justice Manji delivered the final verdict, finding Karka guilty on both counts and subsequently sentencing her to five years’ imprisonment. The sentence includes an option for a N3 million fine on each count, with the sentences set to run concurrently. Beyond the imprisonment, the court has also ordered Karka to restitute N29.8 million to Bonghe Microfinance Bank.
The court order to restitute a significant amount of the stolen funds underscores the emphasis on financial recovery. The EFCC explained that Karka’s conviction followed the findings of a 2021 audit which uncovered the unauthorized transfers from the bank’s account to a non-customer. The investigation traced these funds back to Karka and Batalu, revealing the complexity of the scheme. Despite all efforts to recover the diverted funds, they were unsuccessful. This inability to recover the complete amount emphasizes the challenges in the fight against financial crime and the importance of proactive preventative measures.
The outcome of this case serves as an example of the EFCC’s determination in upholding financial regulations and ensuring accountability within the financial sector. The judgment serves as a deterrent to others involved in similar activities, reminding them of the potential consequences. The case provides a valuable lesson for financial institutions on the need for stricter governance, regular audits, and the implementation of robust internal controls to guard against fraud