Johannesburg – South Africa’s Constitutional Court has delivered a significant setback to YeboYethu, the Black Economic Empowerment (BEE) shareholders of Vodacom.
On Thursday, (17 October 2024), the court dismissed Vodafone’s attempt to join the high-stakes legal battle between Vodacom and Nkosana Makate, the inventor of the “Please Call Me” service, as a friend of the court (amicus curiae).
The Constitutional Court has considered the application for admission as amicus curiae.
“It has concluded that the application should be dismissed as no case has been made out for admission as amicus curiae or ‘friend of the court,’” reads the court order.
Notably, the court also decided not to award costs.
This marks the third time the court has ruled against Vodacom, Vodafone, and now YeboYethu.
Last month, Vodafone’s similar application to be part of the case was also rejected, despite the parent company’s close ties with its South African subsidiary.
Vodafone’s bid to present itself as neutral and assist in the matter was shot down by the country’s highest court, hinting that a significant ruling could be on the horizon.
Last month, Makate, who has been fighting for fair compensation for over two decades, celebrated the latest ruling as a “massive victory.”
Earlier this year, the Supreme Court of Appeal ruled that Vodacom must pay Makate between 5% and 10% of the total revenue generated by the “Please Call Me” service over the last 18 years.
Vodacom had previously offered him R47 million, a sum Makate rejected as far too low.
The empowerment vehicle YeboYethu raised concerns that compensating Makate billions of rands could severely impact its thousands of ordinary Black shareholders and potentially destroy the BEE entity.
According to Vodacom’s estimates, Makate’s payout could range from R29 billion to R63 billion.
This protracted legal fight will return to the Constitutional Court on 21 November 2024, where Vodacom will seek leave to appeal a previous ruling requiring the company to pay billions in compensation to Makate.
The stakes are high as Makate moves closer to what could be a final victory after years of battling for justice.
The upcoming court hearing is expected to be pivotal, with all eyes on the Constitutional Court to see how this long-running saga will finally unfold.
*The article first appeared in our sister publication: techfinancials.co.za
