Please-Call-Me inventor Nkosana Makate cannot be entitled up to R63-billion. And Vodacom’s offer to him of R47-million, now R80-million after adding interest, is fair and equitable.
This was the argument made by Vodacom’s lawyer, Adv Wim Trengrove SC, on Thursday. He was leading arguments during a matter between Vodacom and Makate.
He added that the Supreme Court of Appeal (SCA) judgement is not implementable. It ruins Vodacom and its programs, he said.
On Thursday, the Constitutional Court heard an application by telecommunications giant Vodacom to appeal an SCA judgment. The SCA judgment set aside a R47-million offer that Vodacom made to Makate five years ago in 2019. Makate is opposing Vodacom’s application.
In February, the SCA dismissed an appeal by Vodacom. It ordered the company to pay Makate between 5% and 7.5% of the total revenue made through the Please-Call-Me service. These calculated for more than 18 years. Calculation estimations showed that Vodacom should pay Makate an amount ranging from R9-billion to R63-billion. This is deemed as fair compensation for his idea. But Makate intends to settle for R9.4-billion.
The case was heard by Chief Justice Mandisa Maya, Acting Deputy Chief Justice Mbuyiseli Madlanga, Justices Nonkosi Mhlantla, Leona Theron, Steven Majiedt, Zukisa Tshiqi, Rammaka Mathopo, Owen Rogers and Acting Justice Rishinand Seegobin.
Makate turned down CEO’s offer
Previously, in 2022, the Pretoria High Court ruled that Vodacom must pay Makate more than the R47-million it offered him in the long-running saga. Vodacom, through its CEO Shameel Joosub, offered Makate R47-million in compensation. Makate rejected it.
During court proceedings, Trengrove argued that the Please-Call-Me idea lost commercial value as MTN implemented it first. And the Please-Call-Me service that was rolled out differed from Makate’s buzzing idea. Trengrove used these points to strengthen his case that Makate is not entitled to anything above the R80-million Vodacom is offering him.
“Vodacom’s R80-million offer is fair and not inequitable. Makate’s computation is wrong,” said Trengrove.
He was also at pains to try and explain to the Apex Court why the Constitutional Court has jurisdiction on the matter.
“Is the complaint of Vodacom that you got a bad judgement from the SCA or the SCA strayed from the issues? Does that engage the jurisdiction of the Constitutional Court?” asked Mathopo.
Vodacom did not receive fair hearing
Trengrove said Vodacom’s appeal application is to persuade the court that Vodacom did not receive a fair hearing at the SCA in February. That means the highest court in the land has jurisdiction to cover the matter.
The courtroom gallery was packed with members of the public and the media. Gauteng Premier Panyaza Lesufi and provincial education spokesperson Steve Mabona were also in attendance. As well as the Pro-Makate supporters.
The battle between Makate and his former employers began in 2008 when he was a trainee at the company.
During his time with the company, he came up with “Please-Call-Me” service. It was an idea Vodacom bought into and rolled out in March 2001. And which proved to be a success, allegedly generating billions of rands for Vodacom.
Makate is demanding R9.4-billion in compensation from Vodacom. However, Vodacom only offered Makate R47-million.
The Constitutional Court will either dismiss Vodacom’s application for leave to appeal. It will then give orders as to how the SCA ruling should be implemented. Or it will grant Vodacom’s application, hear the merits of the appeal, and make a ruling.
Makate, 48, was 24 years old when he came up with the Please-Call-Me idea in 2000. He was motivated by the need to communicate with his girlfriend at the time, now his wife. Makate had bought a cellphone for her. They got married in 2004, and have three daughters.
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