In a dramatic twist to the long-running “Please Call Me” service compensation dispute, South Africa’s Constitutional Court has dealt a major blow to Vodafone – the parent company of Vodacom.
On Friday, the court rejected Vodafone’s bid to be a friend of the court (amicus curiae) in the high-profile legal brawl between Vodacom and Nkosana Makate, the creator of the “Please Call Me” service.
Vodafone has maintained a close relationship with its subsidiary throughout this drawn-out legal battle.
However, Vodafone’s attempt to position itself as a neutral party – ready to assist if required – was shot down by the Constitutional Court, perhaps signalling that South Africa’s highest legal authority was gearing up to deliver a monumental ruling.
Makate, who has been fighting for fair compensation for over two decades, hailed the ruling as a “massive victory.”
Speaking to Business Times, Makate stated, “Vodafone’s application was nothing more than an attempt to interfere in South Africa’s judicial process.
“As a controlling shareholder, they are effectively litigants, not impartial observers.”
The Vodacom move to appeal, marks the second time the Constitutional Court has been involved with the “Please Call Me” case.
In 2016, the court ruled that Makate must be compensated for his innovation, which has generated billions for Vodacom since its inception in 2001.
Yet, despite this victory, Makate’s fight for compensation has been repeatedly delayed by Vodacom’s legal manoeuvring and haggling over the size of the compensation.
Earlier this year, the Supreme Court of Appeal (SCA) ruled that Vodacom must pay Makate between 5% and 10% of the total revenue generated by the “Please Call Me” service over the past 18 years.
On 8 February 2022, the high court ordered a reconsideration of the settlement offered.
Recently, the high court found that Makate was entitled to 7.5% of the total revenue from the “Please Call Me” product for 18 years, from 2001 to 2019, plus interest.
The proposed model for compensating Makate works out to an estimated payment of between R29 billion and R63 billion.
But instead of settling, Vodacom opted to appeal to the Constitutional Court – effectively stalling the process once again.
Six months have passed since Vodacom lodged its appeal, but no hearing date has been set.
With South Africa’s apex court dealing with a backlog of cases, it’s unclear whether the Makate case is seen as a priority.
Late last month, the top court announced that would hear an application from Vodacom seeking leave to appeal a ruling that requires the company to pay billions of rands in compensation to Makate.
The date of the hearing was not set.
However, with the Constitutional Court’s latest ruling against Vodafone, there is growing hope that the end is near for this protracted legal battle.
If newly-appointed Chief Justice Mandisa Maya steps in, she could expedite what has become one of South Africa’s most significant legal cases.
This is more than just a fight over compensation – it’s a test of the rule of law and the ability of South Africa’s courts to uphold justice, even when billions of rands and corporate interests are at stake.
A decisive ruling in favour of Makate would be historic, sending a powerful message that justice cannot be delayed for financial gain.
Those who warn of economic fallout or job losses at Vodacom if Makate is paid what he’s owed should be reminded that investor confidence is built on the foundation of a fair and transparent legal system.
Furthermore, those who still doubt that Makate is the rightful creator of “Please Call Me,” despite our court’s clear ruling, should reconsider their stance. If they have no respect for our judiciary, perhaps they should take their disregard elsewhere.
If Vodacom’s shareholders, including the Public Investment Corporation, truly respect the law, they should support the court’s decision – regardless of the financial implications.
If Vodafone needs to sell its entire shareholding in Vodacom in the wake of a payout, there will be no shortage of interested buyers.
Global telecom giants like Emirates Telecom, BhartiAirtel, SK Telecoms even China Mobile or even private equity firms, could be circling.
This ruling may be the spark that lights a fire of accountability in South Africa’s sometimes lax corporate industry.
It’s time to celebrate this small victory for Makate and push for a resolution that honours both justice and the rule of law.
The Constitutional Court is poised to make history. Let’s hope it seizes the moment.
