BANK MD JAILED FIVE YEARS FOR N32 MILLION FRAUD IN ADAMAWA – Court Orders Restitution Of N29.8 Million To Victim Bank

The Managing Director of Bonghe Microfinance Bank, Grace Andreas Karka, has been convicted and sentenced to five years imprisonment for her role in a N32 million fraud scandal that rocked the Yola-based financial institution.

Justice Benjamin Lawan Manji of the Adamawa State High Court handed down the sentence after finding Karka guilty on two counts of criminal conspiracy and cheating, following a full trial prosecuted by the Gombe Zonal Directorate of the Economic and Financial Crimes Commission (EFCC).

The Charges

According to court records, Karka and one Prince Moses Batalu were accused of conspiring between August 2020 and March 2021 to dishonestly divert funds belonging to Bonghe Microfinance Bank Nigeria Limited.

One of the charges read:

“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 N66,792,960.00 from Bonghe Micro Finance 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 first arraigned on November 11, 2024, where she pleaded not guilty, leading to a full trial.

Prosecution counsel Mubarak Tijani called several witnesses and tendered documentary evidence to establish the case, while the defence presented three witnesses in an attempt to absolve the accused.

In a detailed judgment delivered on October 17, 2025, Justice Manji held that the prosecution had successfully proved its case beyond reasonable doubt, convicting Karka on both counts.

The judge sentenced her to five years imprisonment, with an option of N3 million fine on each count, to run concurrently.

Additionally, the court ordered the convict to restitute N29,877,040 — the outstanding balance of the stolen sum — to Bonghe Microfinance Bank.

According to EFCC investigations, Karka’s crimes came to light in 2021, when Bonghe Microfinance Bank conducted an internal audit of its accounts domiciled with First Bank of Nigeria Limited.

The audit uncovered suspicious transactions involving irregular fund transfers to an account not linked to any registered customer. Further checks revealed that the transfers were personally executed by Karka, then Managing Director of the bank, in favour of Prince Moses Batalu, without board approval or authorization.

Despite several efforts by the bank to recover the funds, no repayment was made, prompting a formal petition to the EFCC.

With the conviction, the Adamawa State High Court reaffirmed its stance against financial misconduct in the banking sector, sending a strong message to corporate executives entrusted with depositors’ funds.

Karka is expected to serve her sentence at the Yola Correctional Centre unless she opts to pay the fines and complete the restitution as ordered by the court.