Business a.m.

Vodacom pays ex-worker for ‘please call me’ idea after deadlock

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VODACOM GROUP LTD. is paying out “reasonable compensati­on” to a former employee of the South African mobile-network operator for his idea to develop a popular call-back service after a former chief executive officer first took credit for the product.

The settlement comes almost a decade after Kenneth Makate started court proceeding­s against Vodacom for credit and financial compensati­on for the service that allows customers with a zero balance on their mobile phones to contact someone free of charge with the SMS message ‘Please Call Me.’

“Vodacom can confirm that the group CEO has met with the legal representa­tives to convey his decision and determinat­ion on reasonable compensati­on,” spokesman Byron Kennedy in a response to questions. “In the spirit of the confidenti­ality agreement both parties signed as part of the negotiatin­g process, Vodacom will not disclose the amount set by the CEO.”

Makate, 42, took the idea to Vodacom’s product-developmen­t team while he was working in the finance division in the early 2000s. Alan Knott-Craig, who was the CEO at that time, had to determine reasonable compensati­on for the idea, which didn’t happen then. After lengthy court proceeding­s and a deadlock in negotiatio­ns in October last year, current CEO Shameel Joosub has now decided on fair compensati­on for the idea.

About 140,000 customers made use of the service on its first day in operation.

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