Vodacom Appeals Please Call Me Compensation Case to Constitutional Court

  • Vodacom appeals Please Call Me case to Constitutional Court, citing unfair treatment and flawed judgment by Supreme Court of Appeal.
  • Concerns raised over potential negative impact on Vodacom's operations, investment attractiveness, and social programs.
  • Despite legal proceedings, Vodacom remains open to negotiation for an amicable resolution to the compensation dispute.
Published by
Lethabo Ntsoane

In a bid to resolve the long-standing dispute over compensation for the “Please Call Me” (PCM) service, Vodacom Group Limited has taken its case to the Constitutional Court of South Africa. This move follows the recent judgment handed down by the Supreme Court of Appeal (SCA) on 6 February 2024.

Background

The PCM service, developed and launched by Vodacom as a free service to its customers in 2001, stemmed from an idea by former employee Kenneth Nkosana Makate. After years of legal battles, the matter reached a critical juncture when the SCA delivered its verdict earlier this month.

SCA Judgment

Vodacom lodged an application for leave to appeal the SCA’s judgment, expressing concerns over various aspects of the decision. According to Vodacom, the SCA’s ruling infringes upon the Rule of Law and denies the company a fair trial under the Constitution of the Republic of South Africa, 1996. Among other grievances, Vodacom argues that the SCA considered issues not brought before it and selectively assessed evidence, overlooking submissions made by the company.

Potential Impact

The outcome of this legal battle could have far-reaching consequences, not only for Vodacom but also for South Africa’s investment landscape. Vodacom warns of adverse effects on its operations, investment attractiveness, employees, shareholders, public finances, network infrastructure, coverage, and social programs should the SCA’s judgment stand.

Open to Negotiation

Despite the legal proceedings, Vodacom remains open to constructive dialogue and negotiations to reach a fair and reasonable resolution. The company emphasizes its desire for an amicable conclusion to the matter.

Timeline of Events

A timeline of key events in the Please Call Me compensation case:

DateEvent
2001Vodacom launches the Please Call Me service, inspired by Kenneth Nkosana Makate’s idea.
2016Vodacom’s CEO determines compensation of R47 million for Makate’s idea.
February 2022The High Court sets aside the CEO’s determination, prompting Vodacom to appeal.
6 February 2024The Supreme Court of Appeal delivers its judgment on the case.
28 February 2024Vodacom lodges an application for leave to appeal to the Constitutional Court.

Conclusion

As Vodacom pursues legal avenues to address the Please Call Me compensation matter, the company underscores its commitment to upholding the rule of law while seeking a resolution that is fair and equitable for all parties involved. The outcome of this case is eagerly awaited, with implications extending beyond the telecom giant to the broader investment climate of South Africa.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo