Less than a week after closing the curtain on its decades-long ‘Please Call Me’ saga, Vodacom, South Africa’s largest mobile operator by subscriber base, finds itself bracing for other legal showdowns.
Unveiling its interim financial results and dividend declaration for the six months ended 30 September, the telecoms giant revealed it remains entangled in multiple legal disputes across several jurisdictions.
“The group has, in consultation with its legal advisors, assessed the possible outcomes and has determined that adequate provision has been made in respect of all these cases as at 30 September 2025,” the mobile network operator states in its results booklet.
The announcement comes after Vodacom and former employee Nkosana Makate last week settled the years-long ‘Please Call Me’ legal battle out of court.
Vodacom says in the booklet that Makate started legal proceedings in 2008, claiming compensation for a business idea that led to the development of a service known as ‘Please Call Me’.
In July 2014, the Gauteng High Court ruled that Makate had proven the existence of a contract, but that Vodacom was not bound by that contract because the responsible director did not have the authority to enter into such an agreement on Vodacom’s behalf.
The High Court and Supreme Court of Appeal (SCA) turned down Makate’s application for leave to appeal in December 2014 and March 2015, respectively.
In April 2016, the Constitutional Court of South Africa granted leave to appeal and upheld Makate’s appeal. It found that Vodacom was bound by the agreement and ordered the parties to negotiate, in good faith, and agree a reasonable compensation amount payable to Makate or, in the event of a deadlock, for the matter to be referred to Vodacom Group’s CEO to determine such compensation amount.
Makate’s application for the aforementioned order to be varied from the determination of an amount to a compensation model based on a share of revenue was dismissed by the Constitutional Court.
Back and forth
In accordance with the Constitutional Court order, and after negotiations failed, the CEO issued his determination on 9 January 2019.
The CEO’s award of R47 million was rejected by Makate, who subsequently brought an application in the High Court to have the CEO’s determination and award reviewed and set aside.
The High Court, in a judgement delivered on 8 February 2022, set aside the CEO’s determination and ordered him to reassess the amount employing a set criterion which would have resulted in the payment of a higher compensation amount, for the benefit of Makate, than that determined by the CEO.
Vodacom appealed against the judgement and the order of the High Court to the SCA. The SCA heard the appeal on 9 May 2023 and its judgement was handed down on 6 February 2024.
A majority of three judges, with a minority of two judges dissenting, dismissed the appeal and ruled that Makate was entitled to a compensation amount in the range between 5% – 7.5% of revenue earned by Vodacom from its ‘Please Call Me’ service, plus interest, from March 2001 to the date of the judgement.
On 27 February 2024, Vodacom applied to the Constitutional Court for leave to appeal the judgement and order of the SCA.
The Constitutional Court, in its judgement handed down on 31 July 2025, set aside the SCA’s judgement and order. The matter was remitted to the SCA to be reheard by a differently constituted panel of judges. The date for this hearing was set for 18 November.
“On 4 November 2025, the board approved a settlement agreement and the matter was settled by the parties out of court,” says Vodacom.
It notes that the settlement has been accounted for in the group’s interim results for the six months ended 30 September.
As part of the settlement process, a notice was sent to the SCA withdrawing Vodacom’s appeal. Additionally, a notice was sent to the High Court to abandon the 8 February 2022 judgement, it adds.
However, it did not disclose the terms of the agreement.
Tax evaluation
Meanwhile, Vodacom notes it is regularly subject to an evaluation by tax authorities of its direct and indirect tax filings, the most significant of which are capital allowances, withholding taxes, customs duty and transfer pricing in certain jurisdictions.
It points out that the consequence of such reviews is that disputes may arise with tax authorities over the interpretation or application of certain tax rules to the group’s business.
According to the mobile network operator, the tax laws are, in some instances, ambiguous and subject to a broad range of interpretations.
“To address and manage this tax uncertainty, good governance is fundamental to the group’s business sustainability. All major tax positions taken are subject to review by executive management and are reported to the board,” it says.
“The group has support from external advisors with regards to the positions taken in respect of the significant tax matters which confirms the application and interpretation of the tax legislation. The group has considered all matters in dispute with the relevant tax authorities and has accounted for any exposure identified, if required.”
The group has not disclosed all the details in respect of the open tax disputes as these matters are still under the dispute resolution process.
“These disputes may not necessarily be resolved in a manner that is favourable to the group,” says Vodacom.
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