Johannesburg – Vodacom has revealed that long-term reward potential payments remain a case to me, ranging from millions to billions of rands.
The telephone company owned by Vodafone has still challenged the Court of Appeals (SCA) since 2001, which has ordered 5% to 7.5% of its total revenue to be paid from the service.
In a statement released today as part of Financial Results Publishing, Vodacom said:
“As a result, the range of possibilities for compensation outcomes for this issue is very broad.
The amount paid to Mr. Macate is uncertain and depends on the success of Vodacom's appeal against the SCA's judgment and order, as well as the merits of the case. ”
The company has recorded non-significant provisions in its financial statements as it continues to challenge the level of compensation.
Case background
In 2016, the Constitutional Court ruled that Vodacom must compensate Nkosana Makate, the inventor of the Please Me service.
Vodacom CEO initially provided R47 million in 2019, but Makate refused.
The SCA later gained the support of Makate and ordered 5%-7.5% of total revenue (estimated at R29 billion).
Makate is demanding R9.4 billion and interest.
Pending Constitutional Court decisions
Vodacom filed an appeal to the Constitutional Court on November 21, 2024, when it heard the debate.
However, six months later, the sentence is still pending.
Last week, the Supreme Court Justice Office (OCJ) confirmed with TechFinancials:
“There is no date for the judgment to be issued yet. The parties will be notified once the court is ready.”
Why delay?
Other cases asked in November 2024 have already been decided, but the Makate vs. Vodacom ruling remains prominent.
Waiting for 25 years of justice for Macate
Stuart Scott, Macete's lawyer, stressed:
“Makete is now 48 years old. He has been waiting for compensation for 24 years, but Bodacom continues to benefit from his invention.”
Despite nine court victory, Vodacom's continued appeal extended the case, leaving Makate at Limbo.
What's next?
The Constitutional Court's decision will determine whether Vodacom must pay billions or whether the SCA's ruling will be overturned.
Until then, the reward range remained very uncertain.
For now, Vodacom is still holding on to that stance.
“We are challenging the SCA's decisions on multiple grounds, including the feasibility of the order.”
As the legal battle continues, 25 years after his invention changed the South African communications landscape, Macete's battle for fair compensation continues.
*This article was first published in sister publication techfinancials.co.za
