Apex Court's surprise ruling extends Makate's Please Call Me Battle
Image: Supplied
FOR nearly two decades, South Africans have watched the legal saga between Vodacom and its former employee, Nkosana Makate, unfold like a courtroom drama with no final act.
The latest twist, a unanimous Constitutional Court judgment handed down on Thursday, has reignited public interest and legal debate.
In a development that stunned many legal observers and defied predictions of finality, the apex court has remitted the case back to the Supreme Court of Appeal.
It will now be reconsidered by a freshly constituted bench. This move injects fresh uncertainty into a saga long believed to be approaching its conclusion. But what does this mean, and why does it matter?
It is important to clarify that Makate's original idea was a simple yet powerful proposition: a mobile user with no airtime should be able to 'buzz' another user, prompting them to call back.
Vodacom, recognising the creativity, developed the concept into the now-famous "Please Call Me" free message.
This version allowed for costless transmission and universal utility. That difference matters, especially when assessing the various compensation models, which have ranged from employee-equivalent remuneration to revenue-sharing frameworks.
The Supreme Court of Appeal had previously affirmed the Gauteng High Court's decision in Makate's favour and went further, controversially substituting its own compensation formula and awarding Makate 5 to 7.5 percent of Please Call Me revenue.
Vodacom challenged this ruling, arguing that the SCA overstepped its bounds as an appellate court, particularly because Makate had not lodged a cross-appeal.
The Constitutional Court, being the highest court in the land, granted Vodacom leave to appeal and upheld its challenge.
Justice Mbuyiseli Madlanga, writing for a unanimous bench in what is widely regarded as his swan judgment before retirement, agreed.
The Constitutional Court held that the SCA had impermissibly ventured into terrain that required a cross-appeal and had disregarded the true issues before it.
This resulted in a failure of justice, specifically a breach of Vodacom's right to a fair public hearing as guaranteed under section 34 of the Constitution.
The Constitutional Court has directed that the case return to the SCA, where a different panel of judges will now consider it afresh. It marks a rare judicial reset in a case that has already passed through every major court in the country.
The legal significance of this moment cannot be overstated. The Constitutional Court has reinforced the boundaries of appellate authority and revived critical scrutiny around the quantum of fair compensation.
The referral order compels the SCA to take a fresh look, with a new bench and a sharper lens, at the determination originally made by Vodacom's CEO.
That figure was R47 million, reached after extensive modelling and expert input. It followed a failed negotiation between Makate, who proposed R20.2 billion, and Vodacom, which offered R10 million. Makate has challenged the CEO's determination as woefully low, especially in light of the widespread success of the Please Call Me service.
Beyond the courtroom, this case has come to represent the struggle for equitable recognition of intellectual contributions, especially by employees in corporate ecosystems.
The 'Please Call Me' litigation has gripped the public imagination. It's not just because of the staggering figures involved.
It speaks to something profoundly South African: the courage to claim one's voice and the power of innovation born in unlikely places.
As the legal process restarts again, one hopes that the eventual outcome will honour not just the merits of law but the deeper values it serves—justice, fairness, and transformative equity.
That would be a fitting tribute to Justice Madlanga's legacy of principled clarity and constitutional fidelity.
(Nomvalo is Head of Legal: Operations at Life Healthcare Group. She began her career in corporate litigation and commercial law at Cliffe Dekker Hofmeyr Inc. Her expertise also encompasses traditional arts, heritage preservation, transformation, and the promotion of women's and children's rights. Her views don't necessarily reflect those of the Sunday Tribune or Independent Media)
SUNDAY TRIBUNE
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The South African
7 hours ago
- The South African
Afrikaner refugee reveals car wash job: 'Be prepared to work!'
Afrikaner 'refugee' Errol Langton has advised South Africans hoping to resettle in the US to accept low-paying jobs. He's also warned them not to have unrealistic expectations about their new lives abroad. The IT business owner and part-time 'leafy green farmer' swapped his life in Johannesburg to live in Birmingham, Alabama. He now works at a local car wash. Langton was amongst the first group of white South Africans who applied for the refugee resettlement programme. In February, President Donald Trump signed an Executive Order, granting refuge to Afrikaners or 'minorities', over his claims of 'racial discrimination' and 'persecution' in South Africa. Speaking in an interview with US intelligence expert Chris Wyatt, Errol Langton revealed that he had taken a job at a local car wash in Birmingham. Langton, who owned an IT business in South Africa, advised fellow refugee applicants to 'come over and be prepared to work.' He said, 'Take what you can get now and work on what you want later. Don't get here and want the $50-an-hour job; take the $15-an-hour job so that you can get on your feet. 'Take the low-paying job to start with and then build to what you want. I promise you, in a year's time, you will be there.' Errol Langton stated that the US Citizenship and Immigration Services (USCIS) had given resettled refugees a 'starter loan' and aid to get on their feet. Several of his family members had already secured jobs just days into their stay, he claimed. He continued: 'If you play the victim card, you will not fit in. You will not be a part of society. 'It's not discrediting what has happened to you. If you get that out of your system and show that you've taken the opportunity that you've been given, and you go work hard on it, you can open any door. The opportunities are endless.' He also warned South African 'refugees' not to expect the same lifestyle in the US either. He said, 'There is nobody to clean up after you. If you make a mess, you clean it up. 'I don't care if you're 18 or 80, if you've got to do something, you do it. You can pay someone else to do it, but that is going to cost you'. According to various immigration and recruitment agencies, South African migrants flock to countries like Canada, Australia, the UK, the US, and New Zealand. These first-world countries offer the prospects of high living standards, thriving economies and job markets, and communities of South African expats. For immigrants, or refugees, there is a high demand for skilled labour in sectors like engineering, construction, IT, healthcare, finance, and education. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
The South African
8 hours ago
- The South African
Left behind? Somalia secures Starlink
Somalia is the latest country on the continent to get Starlink – the internet satellite service belonging to Pretoria-born Elon Musk – leaving many South Africans frustrated at being 'left behind'. The news comes amid reports that the world's richest man is set to bypass transformative legislation like Black Economic Empowerment (BEE) policies to operate his company in his home country. Musk is reportedly planning a R2 billion investment in development in southern Africa. On the X app, Elon Musk announced that Starlink was now operating in Somalia. The news came as a surprise to many, given the East African country's ongoing civil war and widespread poverty. South Africans also joined the commentary. Some, like former DA Renaldo Gouws, expressed their annoyance at South Africa seemingly falling behind. He posted on X: 'A war-torn Somalia manages to get Starlink before South Africa. What does this tell us about the competence of our government?' Another, @G1ngerNomad, added: 'What's actually sad is a country blocking a South African-born billionaire from connecting its poorest schools. While the rest of Africa just says 'yes' and plugs in'. Others claimed that Elon Musk's company was not welcome in South Africa, as long as it did not adhere to transformative legislation that applied to foreign investors. Starlink currently operates in 20 African countries, including South Africa's neighbouring countries, such as Zimbabwe, Botswana, Mozambique, eSwatini, and Lesotho. However, the internet satellite service has yet to be granted an operating licence in South Africa. According to reports, Starlink, which falls under SpaceX, is likely hoping to achieve this with its plans to invest over R2 billion in the country. Business Day reports that the company would finance infrastructure to support the Southern African Development Community (SADC), which is made up of 16 countries. Should Starlink operate in South Africa? Images via X: @starlink The move is thought to be a way to 'work around' local BEE policies, which require 30% local shareholding for foreign investors. In May, Minister of Communications and Digital Technologies Solly Malatsi gazetted a policy direction for his department on EEIPs, which are considered 'alternatives' to transformative legislation. Without mentioning Starlink, the minister claimed that the policy would 'attract investment,' specifically in operating licensing. The minister revealed that current legislation for foreign investments 'did not allow companies to contribute to transformation goals in ways other than traditional ownership'. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
IOL News
9 hours ago
- IOL News
Unlocking opportunities: how shared property models are transforming South Africa's real estate landscape
A shared property deal by two couples has landed them this deluxe Camps Bay property, which they will use as a holiday home. Image: Supplied / Law Real Estate More and more people are turning to shared property models that are unlocking new opportunities for South Africans to get into the property market, secure decent accommodation or even make a dream lifestyle become a reality. In the ever-evolving residential property market, agents are witnessing an upswing in deals being penned between friends, relatives or fellow investors that open doors to property investment and long-term asset growth. It also opens doors to those wanting to improve their lifestyle by co-leasing properties they would otherwise not be able to afford on their own - a scenario that affects virtually everyone. Whether it's friends renting together, siblings buying an investment property or digital nomads sharing space, shared property deals in urban settings have increased in popularity over the years. Lifestyle investing "Independent Media Property" spoke to Warrick Wiegand of Law Real Estate, who shared that he's just concluded a sale involving two Durban couples who've pooled their financial resources to buy a luxury home in Camps Bay in Cape Town for R27.5 million. "They plan on using it as a holiday home, with days marked off for each family in the course of the year. For the rest of the year, it will be let out as Airbnb, with both families splitting these costs and incomes," he said. The five-bedroomed home has sweeping views of the Atlantic and Lion's Head. Image: Supplied / Law Ral Estate Changing lifestyles, pressures on households to make ends meet, and the prospect of becoming a property owner have all contributed to increased demand for shared property models, says Grant Smee, CEO of Only Realty Property Group. He believes this new trend is set to shape the future of real estate. 'Ultimately, these shared models allow more people to participate in the property market, but they must be approached with proper planning, transparency and legal safeguards to protect all parties involved.' He says the trend cuts across all age groups, from young professionals to seasoned investors. Co-investing Two such young investors are Rowan Chetty and his twin brother, Ricky*, 27, who made the bold move at the beginning of the year to invest together while they were still relatively young. Born and raised in Verulam on the KwaZulu-Natal north coast, they'd both moved to Johannesburg, where they work in IT. "We decided one day to invest together after a discussion about how going solo is more difficult and challenging. We then chatted to a few experts and decided that a joint investment was more feasible. "We got a joint bond for an apartment in Greenstone, which is made up of young, dynamic people breaking into the corporate world, with property prices going up in the area," Chetty said, adding that they live there and have friends and family living in the suburb. They have a paying tenant with a lease agreement that suits both parties. Before taking the plunge to rent a luxury home together, experts suggest a few key steps that need to be followed. Image: Pexels Co-investing allows buyers to share the capital and returns of property ownership, with collective buying in South Africa allowing for up to 12 applicants on a single home loan by some financial institutions. Mfundo Mabaso, FNB product head of Home and Structured Lending, said this solution is designed to help South Africans enter the property market and gain both affordability and access to larger home loans on more flexible terms by enabling them to combine incomes and deposits. 'FNB's Collective Buying is a home loan solution that enables up to 12 individuals to jointly apply for a single bond. "This way of investing in property comes with some benefits that a group of individuals can enjoy. Whether they are first-time buyers who want to occupy the property or buy as an investment, this home loan solution caters to those needs. "Strategically, this solution responds to a few important realities: property prices in South Africa continue to outpace income growth for many first-time buyers, and younger or lower-income customers are increasingly looking for collaborative and innovative ways to build wealth. FNB's Collective Buying allows families, friends, or even trusted groups of investors to not only share repayments and risks, but to co-create long-term asset value," he said. Co-leasing Tristen Henning, 28, who works in property management, says his decision to cohabit with a friend has given him access to a spacious three-bedroomed apartment in Blaauwbergstrand, Cape Town, which he would otherwise not be able to afford. "The co-habiting format makes renting a place more realistic for people my age, and with the job market being what it is, it just makes a lot of sense," he said. Smee says that in the rental space, there are a number of important legal requirements and risks that need to be thoroughly understood and pinned down before pals put pen to paper. First off, you need a rental agreement in which two or more individuals sign the same lease and share equal legal responsibility for the entire property. This type of arrangement is commonly used by roommates, friends, couples or business partners sharing a commercial space. If the landlord wants a lease with one primary leaseholder, all parties involved should sign a separate agreement that outlines each person's responsibilities. "These contracts can typically be drawn up on your own or with the help of a professional, both of which are legally binding once signed,' Smee said. He notes that in a case where two or more tenants sign a lease jointly, they are typically held jointly and severally liable. 'This means either tenant can be held responsible for the full rental amount or any damage to the property, regardless of who caused it. If one of the tenants chooses to move out over the period of the lease agreement, then a new contract will need to be drawn up.' He suggests that co-leasing tenants enter a sub-agreement that includes the following: Financial obligations and how payments are split. Responsibility for deposits and damages. Process for early termination. Replacement of departing tenants. 'Early termination is a common source of conflict, so it's vital to include clear terms,' says Smee. 'Treat this like a business agreement, even among family or friends and ensure responsibilities around deposits and replacement tenants are clearly outlined.'
