The Police Special Fraud Unit has begun investigation into a controversial fund waiver involving Intercontinental Bank Plc and companies allegedly promoted by former Governor Bukola Saraki of Kwara State.

A statement released on Friday and signed by the Unit's head, Tunde Ogunsakin, stated that N9.97Billion was waived by the bank for Saraki's companies under the management of Lai Alabi, then the MD/CEO of the bank.

According to the statement, "The companies that jointly incurred this indebtedness were Joy Petroleum Limited, Skyview Properties Ltd, Dicetrade, and Linkers Nigeria Ltd."

The controversial waiver of N9.97Billion represents about 82% of loans and facilities worth N11.97billion granted to the companies in February, 2010.

Now a senator, Saraki was said to have requested for the waiver while still a governor.

According to the statement, the loans and facilities were used to purchase shares of blue chip companies and landed property in Lagos and Abuja.

"Some of the landed properties worth billions of Naira used to secure the loans were curiously released after payment of only N2.3Billion out of the N11.97 jointly owed the bank by the companies," the statement read.

The statement also read that a Central Bank of Nigeria (CBN) report of November 2010 had indicted the then management of the bank for granting the waivers.

The Central Bank report also noted that it was not in the bank's interest to have released the properties which could have been foreclosed to pay the loan.

Similarly, a post-CBN Credit and Investigation Committee set up by the defunct Intercontinental Bank Plc to consider Saraki's request for the waivers was also said to have warned that "the outrageous waivers might be called for a review in future as it constituted depletion of the bank's shareholders' funds".

It will be recalled that Saraki was questioned over the same issue while vying for the presidency last year.