Nearly two decades after the start of the “Please Call Me” dispute, a new legal battle has emerged over a significant portion of Nkosana Kenneth Makate’s compensation from Vodacom.
Although Makate’s long-running fight with Vodacom ended last month with a confidential settlement believed to be worth about R700 million, litigation funder Black Rock Mining is now seeking forty percent of that payout. The funder has approached the Gauteng High Court in Johannesburg, asking that the portion it claims be held in trust while arbitration proceedings take place.
Makate has agreed to set aside forty percent of the funds until the court decides on Black Rock’s application, which aims to preserve the money pending the outcome of the arbitration. Black Rock argues that it played a decisive role in helping Makate win his case against Vodacom and is therefore entitled to its share.
The funder maintains that a written agreement signed in November 2011 authorised it to finance Makate’s legal challenge in exchange for a substantial share of any settlement or court victory. Black Rock says its involvement extended beyond financial support, including reframing Makate’s legal claim to focus on breach of agreement and tracking down a former Vodacom manager who had moved to the United Kingdom to testify on Makate’s behalf. It also insists that it secured new legal representation and contributed millions of rand to the case.
A previous arbitration ruling in March 2020 confirmed that Black Rock had a funding agreement with Makate. The funder said it is disappointed that the dispute could not be resolved amicably but believes the courts will uphold its position.
Makate, however, disputes that Black Rock has any right to the payout, arguing that the agreement was cancelled years ago. His legal team has accused the funder and its former directors of misconduct, allegations Black Rock strongly denies.
Advocate Cedric Puckrin, representing Makate, told the court that Black Rock only pursued urgent intervention after learning of the settlement with Vodacom. He said the funder initially sought undertakings from Makate to freeze forty percent of the money, but these were refused. Black Rock is now asking for interim relief to secure the funds while trying to enforce what it argues are valid contractual rights.
Puckrin said the dispute between Makate and Black Rock’s representative, Errol Elsdon, has dragged on for more than a decade, with disagreements over whether any of Elsdon’s companies are entitled to payment under the funding agreement. He argued that Black Rock has long been aware that Makate would not pay and has taken no meaningful steps to resolve the matter until now.
Makate’s legal team warned that keeping such a large sum in a trust account for several more years could result in significant financial losses, including lower interest earnings and lost investment opportunities.
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