Bank Managing Director Bags Five-Year Jail Term for Fraud

Justice Benjamin Lawan Manji of the Adamawa State High Court has sentenced Grace Karka, Managing Director of Bonghe Microfinance Bank, to five years imprisonment for her role in a ₦32 million fraud.

According to a statement from the Economic and Financial Crimes Commission (EFCC), Karka was prosecuted by its Gombe Zonal Directorate on a two-count charge of criminal conspiracy and cheating.

One of the charges reads: “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 amongst yourselves to do an illegal act, to wit: theft in the sum of ₦66,792,960.00 from Bonghe Microfinance Bank Nigeria Limited with account number 2013668857 domiciled with First Bank Nigeria Limited by dishonestly moving the said sum without necessary approval, contrary to Section 61(2) of the Adamawa State Penal Code Law 2018.”

Karka was arraigned on November 11, 2024, where she pleaded not guilty to both charges, leading to a full trial.

During the proceedings, EFCC’s counsel, Mubarak Tijani, presented multiple witnesses and tendered documentary evidence, while the defence team called three witnesses.

Delivering judgment on October 17, 2025, Justice Manji held that the prosecution had established its case beyond reasonable doubt, convicting Karka on both counts.

She was consequently sentenced to five years imprisonment with an option of ₦3 million fine on each count. The sentences are to run concurrently.

Additionally, the court ordered her to restitute ₦29.877 million to the petitioner, Bonghe Microfinance Bank.

According to the EFCC, Karka’s ordeal began in 2021 when an internal audit by the bank uncovered irregular fund transfers from its account domiciled at First Bank.

Investigations revealed that Karka, then serving as managing director, had authorised the transfer of ₦32 million to one Prince Moses Batalu without proper approval. All attempts by the bank to recover the diverted funds were unsuccessful.