Vodacom Group has applied to South Africa's Constitutional Court for a stay to appeal a judgment that awarded it billions of rands for an idea proposed by a former employee more than 20 years ago.
Earlier this month, the SCA ruled that Kenneth Makate should be paid between R29 billion ($1.5 billion) and R55 billion in compensation, according to calculations by local online news outlet MyBroadband. did.
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A previous order by the Constitutional Court said Vodacom CEO Shameel Joosub should be compensated fairly, with Joosub's compensation at the time calculated at R47 million. Vodacom's latest move means the Supreme Court's payment order will be suspended.
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The company said in a statement on Wednesday that the SCA's decision contains aspects that “are contrary to the spirit of the law and the judgment and order are fundamentally flawed.” Vodacom said the order was “incomprehensible, incomprehensible, vague and impossible to implement or enforce.”
Read: Vodacom ordered to hand over financial records related to 'Call Me'
The lawsuit between Vodacom and Makate has waxed and waned over the years over compensation for an idea he pitched to the company's product development team in the 2000s when he was a member of the company's finance department for a “please call me” calling service. .
Vodacom, a division of Vodafone in London, said the impact of the payments outlined in the SCA judgment, if upheld, would be enormous and far-reaching for both its operations in South Africa and the Vodacom Group. He said it would extend to. South Africa's attractiveness as an investment destination.
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“It will have an adverse impact on employees, shareholders and Vodacom's financial contribution,” the company said. “It will also impact our network investments, coverage and social programs.”
Read Sense here.
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