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Small supplier accuses Vodacom of abuse

Nicola Mawson
By Nicola Mawson, Contributing journalist
Johannesburg, 20 Sept 2012
Pieter van Vuuren has detailed his dispute with Vodacom through a Web site.
Pieter van Vuuren has detailed his dispute with Vodacom through a Web site.

A one-man video design company accuses SA's largest cellular provider, Vodacom, of acting unethically by verbally agreeing to use a product he developed, and then declining to formalise a deal.

However, Vodacom argues the supplier - Pieter van Vuuren - does not have a leg to stand on, because there was never a legally-binding contract and it does not owe him anything.

Van Vuuren has taken the row public on a Web site, which details his side of the dispute over a video that aids customers to help themselves online. He alleges that Vodacom was keen on the concept, and told him to clear his desk to handle the product, but formal paperwork was never forthcoming.

As a result, argues Van Vuuren, he incurred massive debt because he was unable to take on any other work, as he was expecting the deal to come through from the cellular company.

Dead keen

Van Vuuren says Vodacom indicated it was keen on his product in April 2008 and his company, Webizar, would be asked to produce several videos for the Web and broadcast. He says he was told the product had been approved and that provision was being made for it in the quarterly budget.

Vodacom allegedly told Van Vuuren to keep his schedule clear to make sure he can produce videos in different formats for Web and broadcast. However, several months later, Vodacom told Van Vuuren the company no longer needed his product, which was meant to act as a promotional and educational video.

Van Vuuren says he escalated the matter to several other people in the company, including then CEO Pieter Uys and former Vodacom SA MD Sipho Maseko, in April. He says his efforts were in vain as he did not receive any resolution.

Not so fast

However, Vodacom spokesman Richard Boorman says there is no legal basis for Van Vuuren to have a dispute with Vodacom over whether it would use his product.

Boorman says this is a straightforward case of someone presenting an idea, Vodacom showed some interest and looked into it further, and then decided not to go with the solution, because it would not work or because it had something similar already under way.

The original meeting was in April 2008, and Vodacom indicated in July 2008 that it did not have a requirement for the service being offered by Webizar, says Boorman. He points out that Van Vuuren has no written basis for his allegations.

Van Vuuren says the issue is not about whether he has a legal argument, but a lack of integrity on Vodacom's side. He says being led to believe he would have a contract has led to severe financial consequences for him, but concedes that taking Vodacom at face value was not "smart".

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