The move follows the Vodacom Supreme Court's rejection of an earlier High Court judgment on a stay of appeal application. The Supreme Court has directed Vodacom CEO Shamir Joosab to extend a new offer to Nkosana Makate on the basis that Makate has an 18-year contractual relationship with the company.
In 2016, the Constitutional Court recognized Makate as the inventor of the “Please Call Me” service, despite ongoing debate over its origins. The court recognized Makate's rights as a former employee and recognized his right to compensation for his invention. However, it was incumbent on Jusab to determine a fair amount to pay.
Following a 2016 Constitutional Court order, Vodacom's CEO awarded former Vodacom employee Mr Makate R47 million for a “hot idea” developed and launched by Vodacom as a free service to customers in 2001. I decided to pay the money.
Mr Makate rejected this decision and applied to the Gauteng Division of the South African High Court (High Court) for a judicial review and overturning of the CEO's decision. On February 8, 2022, the High Court set aside the CEO's decision and ordered it to reconsider the settlement offer presented to Makate.
Vodacom has commenced an application for a stay of appeal against the judgment and High Court order of 25 February 2022. On February 6, 2024, the Supreme Court handed down its judgment.
Vodacom said in a statement to investors on Wednesday that as a responsible corporate citizen, it respects the judicial system and abides by South African law.
“Having considered the SCA's judgment and order, it is Vodacom's view that there are important aspects of this matter that are inconsistent with the spirit of the law and that the judgment and order are fundamentally flawed,” the statement read. It is written in
“It is clear from the Supreme Court’s dissenting judgment that the majority judgment ignored or ignored many of the issues between the parties and the evidence and submissions related to those issues.”
Vodacom makes the following submissions in its application for a stay of appeal to the Constitutional Court.
- The Supreme Court's order violates the rule of law under section 1 of the 1996 Constitution of the Republic of South Africa (the “Constitution”) and deprives Vodacom of its right to a fair trial under section 34 of the Constitution.
- The Supreme Court is misguiding itself by considering and deciding issues that have not been decided by either Vodacom or Mr. Makate.
- The Supreme Court selectively chose to consider only Mr Makate's evidence, as in the case of the model for calculating the remuneration payable to Mr Makate, but the evidence presented by Vodacom challenging Mr Makate's version It ignores the body of evidence on this point.and
- The orders of the Supreme Court are incomprehensible, incomprehensible, and vague, making them impossible to enforce or enforce.
“If the Supreme Court's judgment is upheld, the implications will be significant and far-reaching, not only for South Africa's attractiveness as an investment destination, but also for both Vodacom South Africa and the Vodacom Group,” the company said.
“It will have a negative impact on our employees, shareholders and Vodacom's financial contribution. It will also impact on our network investment, coverage and social programs.”
Vodacom said it had previously negotiated with Mr Makate to agree reasonable compensation to be paid to him.
“These efforts have unfortunately so far failed. Vodacom is open to constructive dialogue and negotiations in good faith and remains committed to the development of PCM products without prejudice to the appeal process to the Constitutional Court. We are open to agreeing a fair and reasonable amount of compensation for the connected MMakate ideas. Vodacom hopes that this matter will be resolved amicably and brought to a conclusion in a timely manner.”