By Thabo Mosia
Vodacom’s black economic empowerment (BEE) vehicle, YeboYethu, has applied to join the telecommunications giant’s high-stakes appeal to the Constitutional Court in the ongoing legal battle with former Vodacom employee Nkosana Makate, the inventor of the “Please Call Me” service. YeboYethu has requested to be admitted as amicus curiae, or “friend of the court,” seeking to present its arguments as the legal confrontation over compensation intensifies.
This move follows a recent judgment in favour of Makate by a lower court, which has been celebrated as a major victory for him in the prolonged fight for fair compensation. YeboYethu’s application to join the appeal comes after Vodafone Group, Vodacom’s parent company, submitted a similar request, which was subsequently rejected by the Constitutional Court.
YeboYethu’s involvement in the case is expected to bring further complexity to the legal battle, as the empowerment vehicle represents the interests of Vodacom’s BEE shareholders, whose financial stake in the company could potentially be affected by any substantial payout to Makate.
The “Please Call Me” Case: A Long Road to Justice
The “Please Call Me” case has been one of the most high-profile legal battles in South Africa in recent years. It centres on Makate, a former junior employee at Vodacom who created the now-iconic service in the early 2000s, which allows mobile users to send a free message asking someone to call them back. This service became an immediate hit among South Africans, especially those with limited access to airtime.
Makate’s legal fight began when Vodacom failed to honour an alleged agreement between him and then-CEO Alan Knott-Craig, which promised Makate a share of the revenue generated by the service. What followed was a prolonged legal battle, culminating in a landmark ruling by the Constitutional Court in 2016. The court found in Makate’s favour, instructing Vodacom to negotiate “reasonable compensation” for his invention.
However, despite this ruling, the two parties have since been unable to reach an agreement on what constitutes reasonable compensation. Makate has rejected Vodacom’s offer of R47 million, arguing that it is far below the value of his invention, which he estimates to be in the billions.
YeboYethu’s Application: Protecting BEE Shareholder Interests
YeboYethu’s decision to enter the fray is significant, as the company represents Vodacom’s BEE shareholders, who hold a significant stake in the telecommunications operator. YeboYethu has expressed concerns that a large payout to Makate could negatively impact the financial interests of these shareholders, including the value of their shares and dividends.
According to an article from TechCentral, YeboYethu is keen to ensure that its shareholders’ interests are taken into account during the legal proceedings. By seeking to join the appeal as amicus curiae, YeboYethu hopes to present its perspective to the court, offering insights into how any financial settlement could affect the company’s BEE strategy.
The empowerment vehicle’s involvement also reflects the broader implications of the case, as it raises important questions about how legal disputes involving large corporations can impact BEE shareholders and their role in South Africa’s transformation agenda.
YeboYethu’s application has garnered attention, particularly because Vodafone’s own attempt to join the case was recently rejected by the Constitutional Court. This has led to speculation about whether YeboYethu’s arguments will be admitted and how they might influence the outcome of the appeal.
Revelations from Recent Reports: Vodacom’s Internal Calculations Questioned
In recent weeks, new revelations have emerged that may add weight to Makate’s claims that Vodacom has undervalued the “Please Call Me” service. MyBroadband published a report revealing potential discrepancies in Vodacom’s internal calculations of the revenue generated by the service.
The report highlighted that Vodacom’s R47 million offer to Makate did not account for certain revenue streams, particularly from prepaid customers who were heavy users of the service. It also suggested that Vodacom’s assessment of the service’s overall value was overly conservative, potentially underestimating its role in attracting and retaining customers.
These revelations have bolstered Makate’s argument that Vodacom’s compensation offer is far below what he is owed. In light of these new details, there are growing calls for Vodacom to provide a more transparent breakdown of how it arrived at the R47 million figure.
Makate has long argued that the “Please Call Me” service has generated billions in revenue for Vodacom, and that his compensation should reflect the true value of the service. He has maintained that Vodacom’s actions have been an attempt to downplay the importance of the service in order to minimise the payout.
Win for Makate: Latest Court Ruling Favors Inventor
Makate scored a significant legal victory earlier this year when a lower court ruled in his favour, rejecting Vodacom’s argument that it had already offered reasonable compensation. As reported by BusinessTech, the court found that Vodacom’s R47 million offer did not meet the standard of reasonable compensation as outlined in the 2016 Constitutional Court ruling.
This ruling was seen as a major boost for Makate’s case, reaffirming his right to pursue a fairer settlement. It also placed additional pressure on Vodacom to increase its offer, as the telecommunications giant now faces the possibility of being compelled to pay a substantially higher amount.
In response to this ruling, Vodacom announced its intention to appeal to the Constitutional Court, setting the stage for the next chapter in the legal battle. YeboYethu’s application to join the appeal has further heightened the stakes, as the court must now consider the interests of Vodacom’s BEE shareholders alongside those of Makate.
The Role of Amicus Curiae in High-Profile Cases
YeboYethu’s request to be admitted as amicus curiae reflects a broader trend in high-profile legal cases, where third parties seek to provide additional perspectives that may influence the court’s decision. As a “friend of the court,” YeboYethu would not be a direct party to the case but would be allowed to submit legal arguments and evidence that could help the court better understand the broader implications of its ruling.
In this case, YeboYethu’s primary concern is likely to be the potential financial impact of a large payout to Makate on its BEE shareholders. YeboYethu holds a significant stake in Vodacom, and its shareholders stand to be affected by any substantial financial settlement.
While the Constitutional Court recently rejected Vodafone Group’s application to join the case, it remains to be seen whether YeboYethu’s application will be accepted. If granted, YeboYethu’s involvement could introduce new legal arguments that may affect the court’s final ruling.
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