Guardrisk, a unit of JSE-listed Momentum Metropolitan Holdings, has been caught up in another misappropriated premiums scandal in which a company it subcontracted to collect client payments on its behalf allegedly ended up using the money for its own purposes.

Court papers show that FML Life collected insurance premiums to the value of R25.78m on behalf of Guardrisk between October 2018 and July 2019. Instead of paying the money over to Guardrisk, FML Life allegedly used the funds to cover its own business expenses, resulting in litigation that has ended up in the high court in Johannesburg...

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