WeeklySA_AdminLITIGATION: They argue please-call-me inventor should instead get R47m, an amount offered by the mobile operator…
By Mpho Hlakudi and Loni Prinsloo
Vodacom’s black shareholders said they oppose a R40 billion payout to an ex-employee as it will wipe out their future earnings and investment in the wireless carrier.
The investors who own a minority stake in Vodacom through the YeboYethu initiative set up in 2008 to increase black ownership have asked the Constitutional Court to allow them to join the mobile operator’s case.
Vodacom declined to comment, and YeboYethu didn’t immediately respond to requests for comment outside of office hours.
Vodacom is challenging a ruling by the Supreme Court of Appeal that Kenneth Makate, a former employee, be paid between 29 billion rand and 63 billion rand for a call-back service idea he proposed to the company’s product-development team when he worked in its finance division in the 2000s.
They argue that Makate should instead get R47 million for his “Please Call Me” idea, an amount previously determined by the mobile operator’s Chief Executive Officer Shameel Joosub, according to court papers seen by Bloomberg.
“Payment of compensation of such a high amount would have disastrous consequences for YeboYethu Investment Co. and its shareholders,” according to the documents. The payment would likely lead to the suspension of dividends to some 80 000 black indirect shareholders of Vodacom for many years, the filing said, and cause a so-called trigger event, where the equity value of Vodacom Group shares falls below the debt in YeboYethu.
The Constitutional Court previously rejected an attempt by Vodacom’s UK-based parent, Vodafone, to join its case.
In papers filed to the court in February Vodacom said the amount determined by the Supreme Court of Appeal would have “devastating consequences” for the mobile-network operator, its employees and its investors.
According to the ruling, Vodacom must pay Makate between 5% and 7.5% of the total voice revenue generated by the Please Call Me service, derived from prepaid or contract offerings from March 2001 to March 2021 (18 years), including interest.
According to media reports, Makate is entitled to receive several billions of rand in compensation from Vodacom, as per calculations stipulated by the SCA.
Makate is also entitled to 27% of the Please Call Me messages sent daily as being revenue generated by the return calls, notes the ruling.
According to Vodacom, the SCA’s order impinges on the Rule of Law in terms of section one of the Constitution of the Republic of South Africa 1996 and deprives the operator of its right to a fair trial under section 34 of the Constitution;
Makate and Vodacom have been embroiled in litigation over the Please Call Me product for more than 15 years. The former Vodacom employee reportedly came up with the idea in 2000.
In line with a 2016 Constitutional Court order, Vodacom determined a compensation figure of R47 million to Makate for the idea.
Makate rejected the offer and brought an application to the Gauteng division of the High Court to have Joosub’s determination judicially reviewed and set aside. On February 8 2022, the High Court set aside the group CEO’s figure and ordered him to reconsider the settlement offered to Makate.
Vodacom on 25 February 2022 launched an application for leave to appeal against the judgement and order of the High Court.
Makate previously claimed Vodacom owed him a settlement of R10.2 billion, which excludes accrued interest and all the legal fees incurred since the Constitutional Court judgement.
In rejecting the application by Vodacom’s UK-based controlling shareholder to join the Please Call Me case, as a friend of the court, the ConCourt found that “no case has been made by Vodafone” in its bid.
In its application, Vodafone had argued it would contribute towards effective debate around the matter, providing insights into valuable information from the perspective of a global shareholder.
Vodafone’s shareholding in Vodacom increased from 60.5% to 65.1%, in December 2022. – Bloomberg/www.fullview.co.za. Additional reporting by ITWeb
Mirror Briefs
TAXI DRIVER JAILED FOR 10 YEARS
A 28 -year-old taxi driver who operated without a driver’s licence and whose gross negligence led to the minibus taxi he had parked rolling into the river killing nine children in Mayflower, Mpumalanga two years ago, will spend the next decade behind bars after being convicted and sentenced in the Elukwatini Regional Court last week.
Nkosinathi Sibanyoni was found guilty on nine counts of culpable homicide following the horror incident that occurred in February 2022 when the minibus that he had parked without taking the necessary precautions including the application of the handbrake, plunged into the river claiming the lives of the nine children aged between 4 and 12 years.
The court heard that he had parked the taxi he was driving between Dundonald and Mayflower near Elukwatini.
An investigation by the police revealed that the taxi rolled into the river due to his negligence. Sibanyoni was then arrested. He appeared in the Elukwatini Regional Court where he was found guilty on charges of culpable homicide and sentenced to 10 years imprisonment on Monday, September 16.
Acting Mpumalanga provincial commissioner, Major- General Zeph Mkhwanazi welcomed the conviction and sentence and said this would serve as a lesson to drivers without licences. – Mpumalanga Mirror.
HEAVY SNOWFALL CLOSES ROADS
KwaZulu-Natal Cooperative Governance and Traditional Affairs MEC, Thulasizwe Buthelezi, has warned residents of severe weather conditions including heavy snowfalls that affected large parts of the province from Friday until the weekend which resulted in the closure of the route from Estcourt in KZN to Harrismith in the Free State.
According to the latest warning issued by the South African Weather Service (SAWS), Level 6 disruptive snow can also be expected in parts of the uThukela, Harry Gwala and uMgungundlovu Districts.
Buthelezi warned that these weather conditions posed a danger to life and could lead to temporary road closures due to ice accumulation, causing traffic disruptions on major routes.
He urged residents in the areas affected, to take the necessary precautions, including delaying unnecessary trips, as the risk of entrapment due to icy roads is very high.
A Level 2 disruptive snow warning has also been issued for the parts of Ugu, uThukela, uMgungundlovu, Harry Gwala and Amajuba Districts. The remaining parts of the province have a Level 2 warning for disruptive rain.
Buthelezi has assured residents that disaster management teams, coordinated by the Provincial Disaster Management Centre, were on the ground and would closely monitor developments. – SA News
EX SABC BOSS TO PAY BACK MILLIONS
The Constitutional Court has declined to hear former SABC COO Hlaudi Motsoeneng’s appeal against a ruling ordering him to pay back the money – R11,5 million – plus interest to his former employer. In a short directive, Concourt said his application for leave to appeal does not engage its jurisdiction.
Motsoeneng was denied an opportunity to appeal to the Supreme Court of Appeal (SCA) regarding the success fee in which he received from the public broadcaster by the Constitutional Court on September 18.
The Special Investigating Unit (SIU) said the constitutional court dismissed an appeal by Motsoeneng of an earlier supreme court of appeal judgment which found him liable to pay back the R11.5-million – plus interest – to the public broadcaster.
Motsoeneng had appealed a January 2023 supreme court of appeal judgment, which had dismissed his appeal of an earlier high court judgment with costs. The high court in Johannesburg had found that the payment of the R11.5-million success fee was unlawful and invalid. He was ordered to pay back the original money, plus interest, which brought his liability to the SABC to R18-million.
The success fee related to his role in securing a contract with Multichoice Group broadcast rights.
Motsoeneng who used to hold the top position at the SABC for being the chief operating officer, from 2011 until 2013, was fired after bringing the public broadcaster’s image into a disrepute. – Lehlohonolo Lehana
BURSARIES FOR STUDENTS OPENED
Cabinet has called on all qualifying students entering and already in the tertiary education sector to apply for the National Student Financial Aid Scheme (NSFAS) bursaries and loans, which opened on Friday.
The National Student Financial Aid Scheme officially opened the 2025 applications process and was committed to providing bursaries and loans to eligible and deserving students who required financial assistance. Speaking at a media briefing, Minister in the Presidency, Khumbudzo Ntshavheni said: “To apply, aspiring and returning students should visit my.nsfas.org.za”.
Applications will close on 15 December.
“This invitation is also extended to learners from grade 9, 10, and 11, who would like to enter the Technical and Vocational Education and Training sector.”
The NSFAS bursary is open to all South African citizens and permanent residents with a combined household income of not more than R350 000 per annum.
For persons living with disabilities, the combined household income is capped at R600 000 per annum. The South African Social Security Agency (SASSA) grant recipients automatically qualify on financial eligibility.
The NSFAS loan is open to all South African citizens and permanent residents where the combined household income is between R350 001 and R600 000 per annum.
For persons living with disabilities, the combined household income is capped at R600 000 per annum. – SA News
