Vodacom in private talks with former employee with the compensation of ‘Please call me’ saga. Image :SABC News
Vodacom to settle ‘Please call me’ saga out of court
Vodacom and former employee Kenneth Makate plan to enter private talks to discuss his compensation for a popular call-back phone service.
Vodacom in private talks with former employee with the compensation of ‘Please call me’ saga. Image :SABC News
Vodacom looks to settle ‘please call me’ R 40 billion saga with former employee Kenneth Makate hoping to discuss their settlement outside the court.
Vodacom wants to discuss Makate compensation for a phone service idea proposed over two decades ago, aiming for an out-of-court settlement.
‘Please call me’ private talks
Businesstech reported that In February, Vodacom filed an appeal with the Constitutional Court after the Supreme Court of Appeal ruled in favour of Nkosana Makate, who is seeking compensation between R29 billion and R63 billion for his ‘Please Call Me’ idea.
The case has been ongoing for years, and Makate is open to private talks with Vodacom. He plans to file opposing papers in the Constitutional Court, challenging the CEO’s earlier calculated compensation of R47 million.
Vodacom “asked for private talks and I will surely oblige and engage them,” Makate said in response to questions Monday, adding that talks are planned for Tuesday.
He also said he will file opposing papers in the Constitutional Court on Monday, reported Businesstech.
Vodacom Raises Concerns Over Payout Impact
According to Businesstech,reported that in 2016 the Constitutional Court said Vodacom Chief Executive Officer Shameel Joosub should work out a fair compensation for Makate, Joosub calculated at R47 million at the time.
Vodacom said the payout of that massive amount would could jeopardize its black economic empowerment structure, Yebo Yethu, impacting about 80,000 Black shareholders.
“The shareholders’ investment in the fund would be wiped out and it would essentially be dissolved,” Vodacom said in the court papers.
Makate said Vodacom’s observations about Yebo Yethu were “simply misleading.”
A R40 billion payout would erase 20% of Vodacom’s market value, directly affecting major institutional shareholders, including the state-controlled Public Investment Corp. managing government employees’ pension funds with 1.3 million active members and 473,000 pensioners, as stated by the mobile carrier, reported Businesstech
