Table of Contents
Nkosana Makate, the former Vodacom employee and the inventor of the “Please Call Me” service, is back before the courts, only days after securing a long-awaited settlement from Vodacom for his “Please Call Me” invention.
The out-of-court settlement is pegged at R700 million ($40.7 million) and brings an end to nearly two decades of negotiations and litigation with the telecom operator. But the payout has opened a new dispute, this time over who has a right to a portion of the money.
A UK-based company, Black Rock Mining (BRM), has filed an urgent application in the Johannesburg High Court, claiming it is owed 40 percent of Makate’s settlement under a funding agreement signed in 2011.
Makate challenges claims, cites missteps
BRM argues that Makate breached the deal by reaching an agreement with Vodacom on Nov. 4 without first obtaining its written consent. BRM’s claim works out to about R280 million ($16.2 million), excluding interest. The company also wants an interim order preventing Vodacom from paying Makate until the court rules on the matter.
Makate, in his papers, outlines a sharply different account of events. He says BRM and its representatives—including the late businessperson Christiaan Schoeman and former director Errol Elsdon—misrepresented their role and provided only a fraction of the support they claim to have given.
Makate questions funding, cites fraud findings
According to Makate, BRM initially said it raised R500,000 ($29,000) for his legal costs in 2011, followed by a further R2.4 million ($140,000). But he says the only direct payment he ever received came in 2014 and totaled just R7,853 ($455.7), paid by Schoeman.
He also alleged that attempts were later made to switch the funder from BRM to another entity, Raining Men Trade, using a forged signature. An arbitrator eventually found that the change was fraudulent and that BRM remained the nominated company.
Even so, the arbitrator also concluded that the 2011 funding arrangement had been validly cancelled in 2015—a position Makate says he still holds. He argues that the progress of his case against Vodacom was driven not by BRM, but by his legal team and personal bank credit. His attorneys, Stemela & Lubbe, have represented him throughout most of the recent litigation.
After $40.7 million, the battle continues
The settlement with Vodacom followed a 17-year dispute that tested how South African companies reward employee-driven innovations. Vodacom confirmed that its board approved the deal on Nov. 4 and said the impact will be reflected in its half-year results due Nov. 10.
While the company did not disclose the final amount due to a confidentiality clause, people familiar with the talks say the figure is close to $40.7 million. For Makate, the settlement was expected to close a long chapter. Instead, it has pulled him into another round of courtroom arguments, this time to protect the compensation he has spent decades to secure.
