Vodacom Pty Limited Versus Nkosana Kenneth Makate- A 20 Year Saga that has Far Reaching Ripples

 

1. Setting the Scene: A Big Idea in a Big Company

Picture the early 2000s — the golden age of mobile communication. Vodacom was booming: fast‑growing, ambitious, and constantly hunting for the next big product. In the middle of this high‑energy environment stood Nkosana Kenneth Makate, a young employee with a deceptively simple idea: a way for people without airtime to ping someone and ask them to call back.

That idea became “Please Call Me” (PCM) — a service that would go on to generate billions, reshape user behaviour, and become a standard feature across mobile networks to this day.

Makate shared the idea with Phillip Geissler, Vodacom’s Director of Product Development. Geissler loved it, promised Makate compensation if it succeeded, and said the CEO would ultimately decide the amount. It all seemed straightforward… until it wasn’t.

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2. The Fallout: When Success Meets Denial

PCM launched. It took off like wildfire. It made Vodacom a fortune.

Makate waited — as agreed — for his compensation. But when he pressed the issue, Vodacom suddenly shifted its stance:

“Actually… no. Geissler didn’t have authority to promise you anything.”

And just like that, a casual workplace conversation turned into a 20‑year legal marathon.

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3. The First Big Turning Point: Constitutional Court, 2016

Makate pushed the matter all the way to the Constitutional Court (CC) — South Africa’s highest court — and this is where the story took a dramatic turn.

The CC held that:

• Vodacom was bound by the agreement.
• Geissler had ostensible authority — meaning Vodacom had created the impression that he could make such commitments, and that appearance was enough.
• Vodacom had to negotiate in good faith with Makate.
• If negotiations failed, the CEO would determine a fair amount.

This judgment sent shockwaves through corporate South Africa. The message was clear:

“You can’t hide behind internal bureaucracy when your executives make commitments.”

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4. Negotiations, a Disappointing Payout, and a New Fight

Negotiations didn’t go well. Eventually, the CEO awarded Makate R47 million — a figure Makate believed was wildly out of touch with PCM’s true value.

So he challenged it.

High Court

The High Court agreed with him, calling the CEO’s determination irrational and ordering a fresh calculation.

Supreme Court of Appeal (SCA)

The SCA went even further. It held that Makate should receive 5%–7.5% of PCM revenue, plus interest.

This was enormous — potentially billions.

Vodacom immediately appealed.

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5. The 2025 Constitutional Court Judgment: A Procedural Earthquake

In 2025, the CC stepped in again — but this time, the issue wasn’t the money. It was the process.

The CC found that the SCA had:

• Ignored crucial evidence
• Misunderstood key issues
• Violated Makate’s right to a fair hearing
• Granted relief Makate hadn’t formally sought
• Issued an order too vague to implement

In essence, the CC said:

“The SCA mishandled this. Start over.”

The case was sent back to a newly constituted SCA panel — a rare and serious judicial intervention.

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6. The Legal Heart of the Matter

Ostensible Authority

This is the backbone of the entire dispute.
If a company makes someone appear to have authority, it cannot later deny that authority when things get inconvenient.

Fairness and Good Faith

The courts repeatedly stressed that Vodacom had a duty to act reasonably — especially after benefiting so heavily from Makate’s idea.

Procedural Justice

The 2025 ruling reinforced that courts must:

• Engage with all material evidence
• Stay within their jurisdiction
• Issue clear, workable orders

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7. Why This Case Matters Beyond the Courtroom

This isn’t just a legal battle. It’s a story about:

• Innovation — Employees can create billion‑dollar ideas.
• Power dynamics — Corporations can’t steamroll individuals.
• Governance — Internal processes must align with external promises.
• Judicial accountability — Even appellate courts get checked.

The case has become a symbol of fairness, persistence, and the value of intellectual contribution.

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8. Where Things Stand Now

As of 2026:

• The case is back before the SCA for a fresh hearing.
• Compensation remains unresolved.
• The saga continues to influence debates on corporate ethics, employee rights, and innovation ownership.

Makate’s fight has already reshaped South African law — and the final chapter is still being written. The lesson is simple: before you share that brilliant idea, make sure your bases are covered. In November 2025, information emerged that Vodacom had reached a settlement with Makate. The settlement amount has not been disclosed but its payment brings to a close all court matters relating to the issue. Cretainly, there is lessons for everyone.