A mud-slinging match has erupted between mobile operating giant Vodacom and Gogga Tracking Solutions, as accusations of underhanded dealings and unethical business practices stem from a High Court ruling.
On Monday, the North Gauteng High Court ruled in favour of Vodacom, rejecting an application for an interdict by Gogga, which sought to protect its customers from the threat of being cut off from Vodacom's network.
Instead, Judge NB Tuchten criticised Gogga's legal team for irregular legal practice, awarding all costs to Vodacom.
The judgment was made available to both the Pretoria Society of Advocates and Law Society of the Northern Provinces, both of which were requested to consider whether the conduct described in the judgement warranted disciplinary action against Gogga's legal counsel.
Gogga MD Eugene Beetge has hit back, saying the judgement was “extremely irresponsible and one-sided as none of the facts were addressed”.
“Unfortunately, the judge ruled against the interdict, stating various irregularities (which are still denied and untested) in the legal procedures, but not relating to the facts and claims of transgressions of Vodacom, made by Gogga. No decision or outcome was made as to the handling of the customers or the relationship between the parties during this hearing.”
As a result, Gogga says it remains committed to continuing its lawsuit against Vodacom, regardless of how long it takes.
In August, Gogga approached the High Court to confirm a court order to protect its customers and their interest in Gogga against Vodacom Service Provider. This request was based on Vodacom's previous actions in June 2010, during which Vodacom cut Gogga's customer Internet lines (connections) while there was an ongoing dispute between the two companies.
During the hearing on 26 August, Gogga also filed for damages of R194 million against Vodacom. The interdict sought to protect Gogga's customers until the hearing and rulings of the various cased had been finalised.
Vodacom victory
Meanwhile, Vodacom maintains the ruling vindicates the company's actions throughout this dispute.
The company notes specific points in the ruling, including the judge's statements that Gogga's founding affidavit was “incomprehensible in certain material respects” and that its request for an interim interdict, to compel Vodacom to supply Gogga at a stated price - and on credit - was “absurd”.
Shameel Joosub, MD of Vodacom SA, says: “We welcome Judge Tuchten's comments and are pleased that the conduct of Gogga has been exposed. We have worked in good faith with Gogga for many months in order to help the company deal with fundamental failings in its business model and to find a solution that protected both the company and its customers.
“Rather than work with us, Gogga responded by using underhanded tactics to improperly gain a court injunction, as well as provide distorted information and half-truths to Carte Blanche.
“This has been a difficult period for Vodacom and we are pleased that the comments from Judge Tuchten vindicate our actions,” he adds.
Gogga cries lies
Beetge has retaliated, saying Joosub's claims are “completely untrue”.
He argues that this partial outcome, referring only to the application for the interdict, leaves Gogga's customers vulnerable to Vodacom's actions. During the dispute, various offers were made by Gogga to pay the disputed accounts in order to protect and move the customers to a new service provider.
Various offers have recently been made by Gogga, after the refusal of the interdict. All were simply rejected by Vodacom. In these offers, Gogga tendered to pay the public rates asked by Vodacom, but again rejected by Vodacom, continues Beetge.
“We feel the outcome of the court hearing today, which only relates to the interim interdict, was not in the best interest of our customers, which are currently innocent bystanders,” he adds.
Beetge maintains that what Gogga requested was protection for its customers. “The primary claims will still be heard in court and at the Competition Commission and these are based on all the previous years of Vodacom non-performance.”
Beetge says that since the ruling, Vodacom has cut off Gogga and its clients from its network, effectively leaving the company out of business. Nonetheless, he says plans are under way with MTN to structure a similar data offering and the MTN offering is in its final stages of testing.
He is confident of existing customer loyalty, which has supported the company throughout its dispute with Vodacom.
“This means Gogga customers will simply move to the new service provider with more support and no more threats, which will also include reduced data rates and increased product offerings,” he concludes.
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