Momentum axes trio over trade secrets

MMI subsidiary Momentum suspended three senior employees at its employee benefits unit on Monday following an internal investigation that showed they had used the company’s sensitive information.

In an e-mail sent to staff and shown to Business Day on Thursday, Regard Budler, an executive in the corporate and public sector unit, the insurer’s employee benefits arm, said the trio had been “involved in dealings with some of [our] competitors that are against our MMI Way values, in clear contradiction [of] their employment conditions and not in the interest of our clients nor the industry.

“They have used our intellectual property and intimate knowledge of our business, staff and clients to the detriment of MMI,” he said in the e-mail.

Budler gave no further details of the transgressions by the three employees – one of who was the national head of corporate sales and marketing – but said Momentum suspected more people were involved.

In response to questions from Business Day, Budler said MMI Holdings’ Corporate & Public Sector Segment could confirm that three employees had been suspended “with immediate effect, based on a breach of their employment contracts and actions that have contradicted the core values of the company”.

MMI’s customers had not been affected by their actions, he said, and the events remained an internal matter.

“We always act in the best interests of our clients and stakeholders and align to the highest industry standards and, therefore, have taken immediate action in order to resolve this issue. We are conducting a full investigation and will resolve the matter through the relevant business channels.”

The Financial Services Board (FSB), which regulates nonbank financial services providers, said it had not been informed of Momentum’s investigation.

“In cases where there is significant risk to the insurer’s business or to policy holders, we would expect them to inform us,” said the FSB’s spokeswoman, Tembisa Marele.