In a bid to settle the long-standing dispute over compensation for the 'Please Call Me' service, Vodacom Group Ltd. and former employee Kenneth Makate are set to engage in private talks this week. The move comes following a recent majority judgment by South Africa’s Supreme Court of Appeal, which could potentially award Makate a compensation ranging between R29 billion and R63 billion.
The 'Please Call Me' service, proposed by Makate over two decades ago during his tenure at Vodacom, has been the subject of legal contention between the telecommunications giant and its former employee. Makate's initial proposal was made to Vodacom's product-development team while he worked in the finance division in the 2000s.
Vodacom has expressed concerns over the substantial compensation amount outlined in the recent court decision, citing potential adverse effects on the company, its employees, and investors. The Johannesburg-based company filed papers on February 26 to appeal the Supreme Court of Appeal decision, highlighting the devastating consequences a payout of such magnitude would entail.
While Vodacom has previously proposed a compensation of R47 million, in line with a 2016 order by the Constitutional Court, Makate remains resolute in seeking what he believes to be fair compensation for his idea.
Responding to queries, Makate stated his willingness to engage in private discussions with Vodacom, scheduled for Tuesday. Additionally, he mentioned plans to file opposing papers in the Constitutional Court on Monday.
However, Vodacom has remained tight-lipped about the ongoing negotiations.
A significant concern raised by Vodacom is the potential impact on its broad-based Black economic empowerment structure, Yebo Yethu. The company expressed fears that a massive payout could trigger adverse consequences, including the dissolution of Yebo Yethu, which boasts around 80,000 Black shareholders.
Despite Vodacom's apprehensions, Makate has dismissed the company's concerns regarding Yebo Yethu as misleading.
Moreover, Vodacom emphasized the broader repercussions of a R40 billion payout, including a substantial dent in its market value and adverse effects on major institutional shareholders, such as the state-controlled Public Investment Corp.
In essence, the 'Please Call Me' saga has reached a critical juncture as both parties gear up for negotiations. The outcome of these discussions could potentially bring an end to the protracted legal battle that has captivated attention for years.
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