South Africa’s Constitutional Court has delivered a significant setback to YeboYethu, the Black Economic Empowerment (BEE) shareholders of Vodacom.
On Thursday, the court dismissed YeboYethu’s attempt to join the high-stakes legal battle between Vodacom and Nkosana Makate, the inventor of the “Please Call Me” service, as a friend of the court (amicus curiae).
“The Constitutional Court has considered the application for admission as amicus curiae. It has concluded that the application should be dismissed as no case has been made out for admission as amicus curiae or ‘friend of the court,’” reads the court order.
Notably, the court also decided not to award costs.
This marks the third time the court has ruled against Vodacom, Vodafone, and now YeboYethu.
Last month, Vodafone’s similar application to be part of the case was also rejected, despite the parent company’s close ties with its South African subsidiary. Vodafone’s bid to present itself as neutral and assist in the matter was shot down by the country’s highest court, hinting that a significant ruling could be on the horizon.
Last month, Nkosana Makate, who has been fighting for fair compensation for over two decades, celebrated the latest ruling as a “massive victory.”
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 last 18 years. Vodacom had previously offered him R47 million, a sum Makate rejected as far too low.
The empowerment vehicle YeboYethu raised concerns that compensating Makate billions of rands could severely impact its thousands of ordinary Black shareholders and potentially destroy the BEE entity.
According to Vodacom’s own estimates, Makate’s payout could range from R29 billion to R63 billion.
This protracted legal fight will return to the Constitutional Court on 21 November 2024, where Vodacom will seek leave to appeal a previous ruling requiring the company to pay billions in compensation to Makate.
The stakes are high as Makate moves closer to what could be a final victory after years of battling for justice.
The upcoming court hearing is expected to be pivotal, with all eyes on the Constitutional Court to see how this long-running saga will finally unfold.
Read more tomorrow: Why YeboYethu’s statements are out of line?”
GUGU LOURIE: Justice for Nkosana Makate: Inventor of Please Call Me deserves his due
Continued attempts over the years to undermine his case are possibly rooted in racism, that lingering ghost of apartheid
It is not in dispute that Nkosana Makate is the inventor of Vodacom’s Please Call Me service. Vodacom, which benefited immensely from Makate’s invention, must pay him what is due. Continued attempts over the years to undermine this fact are possibly rooted in racism, that lingering ghost of apartheid.
Nigerian-British writer Ben Okri once said: “What is reality? Everybody’s reality is subjective; it’s conditioned by upbringing, ideas, temperament, religion, what’s happened to you.”
Okri’s words ring true when examining the attempts by some to erase Makate’s rightful place in history — efforts largely expressed by white journalists, perhaps influenced by old prejudices. They have consistently published stories attempting to discredit Makate’s claim to the Please Call Me service, despite overwhelming evidence, including a Constitutional Court ruling in 2016 that declared him the inventor.
Vodacom was ordered by the apex court to enter into good-faith negotiations to determine fair compensation for Makate’s invention. Yet, the debate was reignited when Ari Kahn, a former MTN contractor, claimed in a radio interview that Makate did not own the rights to the service and therefore was undeserving of compensation. Kahn argued that MTN had filed a similar patent before Vodacom launched the service in March 2001.
Some continue to resurrect Khan’s claims without presenting any new evidence. What’s critical, however, is that Khan’s assertions and the efforts to discredit Makate have overlooked key court rulings. The Constitutional Court had already addressed the differences between MTN and Vodacom’s versions of Please Call Me.
Makate’s service was built around a USSD messaging system that was simple, efficient, and designed specifically to benefit prepaid customers with no airtime — a market Vodacom directly targeted. In contrast, MTN’s offering was based on an interactive voice response (IVR) system, which was more complex, expensive, and lacked a clear market focus.
GUGU LOURIE: Top court must assert authority with final judgment in Makate vs Vodacom case
South Africa’s Constitutional Court appears to be failing Please Call Me (PCM) inventor Kenneth Nkosana Makate to resolve his 16-year legal battle for compensation from telecom giant Vodacom.
While employed by Vodacom, Makate developed the innovative PCM service in 2001, which raked in billions of rand for the company. Despite this significant contribution, the former Vodacom employee is still engaged in a relentless legal battle for fair compensation. On February 6 2024, the Supreme Court of Appeal (SCA) dismissed Vodacom’s appeal with costs.
The SCA further ordered Vodacom to pay Makate between 5% and 10% of the total revenue that the service generated over the past 18 years. However, Vodacom applied to the Constitutional Court for leave to appeal against the SCA judgment and subsequent settlement order. It appears that Vodacom’s move has served only to further delay the settlement of the matter.
Three months after Vodacom lodged the matter with the Constitutional Court, no date has yet been set for the hearing. Like all other courts, the Constitutional Court has a backlog of cases. Perhaps the Makate case is not considered urgent. If judge Mandisa Maya is appointed chief justice, replacing Raymond Zondo who is retiring, she must ensure that this case — considered the biggest settlement case in the history of South Africa’s judiciary — is concluded without further delay. If not, then Makate would have been undeniably let down by the Constitutional Court.