Imagine managing a bank dedicated to supporting everyday people, only to exploit that institution for personal gain.
That was the shocking reality involving Grace Andreas Karka, the former Managing Director of Bonghe Microfinance Bank. On October 17, 2025, an Adamawa State courtroom sentenced her to five years in prison for a scheme that siphoned off millions from trusting customers.
The Economic and Financial Crimes Commission (EFCC) prosecuted the case, detailing a profound breach of trust. Between August 2020 and March 2021, Karka and an accomplice, Prince Moses Batalu, illicitly withdrew (N66,792,960) from the bank’s account at First Bank Nigeria. This brazen financial maneuver, executed without proper approvals, left both shareholders and depositors severely impacted.
The Conspiracy and Cheating Conviction
The ensuing trial captured national attention. Karka initially entered a not-guilty plea, but investigators amassed overwhelming evidence against her.
EFCC investigators presented a formidable case, relying on eyewitness testimony and extensive documentation that meticulously tracked every irregular transfer.
The defense was unable to counter the strong prosecution. Justice Benjamin Lawan Manji ultimately ruled the evidence was airtight, convicting Karka on two counts of conspiracy and cheating related to (N32 million) of the total stolen amount.
The court delivered a stiff penalty:
- Prison Sentence: Karka received a five-year sentence for each count, with the sentences running concurrently.
- Monetary Penalty: She was also given the option to pay a (N3 million) fine per charge.
- Restitution: Karka must repay (N29,877,040)to Bonghe Microfinance Bank, representing the remaining stolen funds.
The case was reportedly broken by a damning 2021 bank audit. This audit revealed irregular, unauthorized transfers that traced directly back to Karka, the person entrusted with safeguarding the funds. As one EFCC source noted, “She was the guardian of those funds. Instead, she picked the lock.”
EFCC Signals Broader Industry Crackdown
The verdict is not an isolated event; it represents a decisive move to clean up the financial sector. The EFCC’s Gombe team hailed the conviction as a strong message to the entire industry.
“Betraying customer trust? Financial shortcuts? Not on our watch,” they vowed.
The commission promises to aggressively pursue any executive engaging in misconduct to restore faith in Nigeria’s financial system.
This crackdown follows recent actions against other high-profile figures. In June, the Managing Director of another bank, Halima Buba, and an executive colleague, Innocent Mbagwu, faced the Federal High Court in Abuja.
They were accused of laundering $12 million through backdoor cash deals and face charges under the 2022 Money Laundering Act.
Why This Verdict Matters
This type of fraud is particularly damaging in Nigeria, where microfinance banks serve as vital lifelines for small entrepreneurs and low-income families.
Such betrayal erodes the fundamental trust required for financial inclusion and stability. However, the verdict serves as a powerful reminder of accountability.
The ruling clearly demonstrates that holding a high-ranking position offers no protection from justice.
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