Vodacom ordered to negotiate payout

260416 Nkosana Makate has won his case against Vodacom "please call me" case at the constitutional court. photo :Simphiwe Mbokazi

260416 Nkosana Makate has won his case against Vodacom "please call me" case at the constitutional court. photo :Simphiwe Mbokazi

Published Apr 27, 2016

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Vodacom has been berated by the highest court in the land for its “dishonourable”, “unfortunate” and “unethical” conduct in dealing with Kenneth Nkosana Makate, the man whose idea made them billions of rand.

Makate, who invented the Please Call Me system, has spent more than 15 years battling the phone giant to be recognised and rewarded for his work.

The reward could be more than R10 billion.

On Tuesday, the Constitutional Court chastised Vodacom for its failure to pay Makate even “one penny” for his idea, and insisted that in the next 30 calendar days, it enter negotiations with him to determine how much he should be compensated.

The shock verdict, read out by Justice Chris Jafta, noted how Vodacom had even used a company newsletter to credit and congratulate Makate for the idea, a clear indication that he was the inventor.

While the lower courts also acknowledged this, they ruled against Makate because they claimed the man to whom he had pitched the idea, Philip Geissler, did not have the ostensible authority to bind Vodacom to a contract for the idea.

It was also ruled that Makate’s claim had prescribed over the years since the service was created.

However, the Constitutional Court established that Geissler, as director and head of product development, did have the power to bind the company, and that prescription did not apply to the claim.

Alan Knott-Craig, chief executive of Vodacom at the time of Please Call Me’s release, wrote in his biography that he had masterminded the concept, but later conceded in court that he had not.

On Tuesday’s judgment saw Knott-Craig declared dishonourable in his conduct, and Vodacom had gone along with this behaviour.

“This leaves a sour taste in the mouth. It is not the kind of conduct to be expected from an ethical corporate entity,” said Justice Jafta.

It has been widely reported that Vodacom made an estimated R70bn off the service, and in his initial claim, Makate laid a claim for 15 percent - which amounts to R10.5bn.

Makate told journalists after the ruling that he hoped negotiations would run smoothly, and that he had planned to stick to his initial15 percent claim.

While he did appear happy, in a very calm tone he also said he had no hard feelings against the company, which he had loved since he started working there as a teenager.

He admitted that while the court proceedings had always been about being rewarded for his work, it was when the case moved to the Constitutional Court that it became about the principle of the matter.

“I’ve been 16 years on this road, nine years now in trial. After three dismissals in the lower courts - there were times where I felt like giving up - This is the end of the road. It’s not what I chose, but I’m happy,” he said.

Makate’s wife Rebecca said she felt ecstatic but also on the verge of tears.

According to the couple, it was Rebecca always running out of airtime that led her then boyfriend to develop the Please Call Me idea.

“You don’t understand the financial impact (the court battles) had on us.

“It seemed impossible to win against such a giant,” she said.

The two had a long-distance relationship as students, and as she couldn't afford airtime, he came up with the Please Call Me idea.

Vodacom on Tuesday said in a statement issued by its spokesman Byron Kennedy: “We are aware of the Constitutional Court ruling and are currently studying its contents.”

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The Star

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