Final fight for Makate’s millions
Black Rock Mining has requested that the chairperson of the Pretoria Society of Advocates, Advocate Liezl Haupt, appoint an arbitrator regarding its dispute with Nkosana Kenneth Makate.
Makate, who Vodacom credits with coming up with the idea that was developed into Please Call Me, had won an estimated R500 million settlement from the mobile operator after a bruising legal battle.
Black Rock’s request for an arbitrator comes after the seven-day period during which Makate’s attorneys were invited to confirm their agreement with the proposed arbitrators or propose alternatives had lapsed.
Black Rock’s legal representatives, SN Mnguni Attorneys, sent Advocate Haupt a letter informing her that Makate’s attorneys had failed to respond.
“To date, Mr Makate’s attorneys have not responded to our correspondence, nor have they proposed alternative candidates. The parties have accordingly failed to agree on an arbitrator,” the firm wrote.
“We accordingly approach you [Advocate Haupt] in terms of clause 11 of the Funding Agreement to request the appointment of an arbitrator, being an advocate with no less than 10 years standing.”
SN Mnguni Attorneys acknowledged that Makate is represented in the dispute by Advocate CE Puckrin and Advocate R Michau, who are both members of the Pretoria Society of Advocates.
“It has been alleged in papers before the court that Mr Makate’s legal team are beneficiaries of a portion of his settlement proceedings, although this allegation has been denied,” it said.
Nonetheless, it is requesting that an arbitrator from the Johannesburg Society of Advocates or another division be appointed to the case to avoid a perception of partiality or conflict.
MyBroadband asked Makate and his legal representatives, Stemela and Lubbe Inc., about the arbitration process, but they hadn’t answered our questions by the time of publication.
Errol Elsdon, through his British Virgin Islands company Black Rock Mining, is Makate’s former backer in his litigation against Vodacom.
Through the arbitration process, Elsdon is hoping to force Makate to honour a disputed 2011 litigation funding agreement, through which he lays claim to 40% of Makate’s settlement.
Black Rock initially moved to block Makate from accessing 40% of his settlement payment. It argued that Makate would dissipate, transfer, or distribute the funds to third parties.
Black Rock filed an interdict application at the Johannesburg High Court, which was heard on 4 December 2025 and dismissed four days later.
Acting Judge Don Mahon found that Black Rock hadn’t provided enough evidence to show that Makate intended to dissipate the funds.
“Without evidence of dissipation or irreparable harm, the application cannot meet the requirements of urgency or interim interdictory relief,” he said in his ruling.
Simultaneously with the interdict application, Black Rock began the process to refer the matter to arbitration for a ruling on its claim. It initially sought a hearing date in mid-December 2025.
Over R100 million in the balance
Elsdon’s claim followed Makate and Vodacom’s announcement that they had settled their legal battle, which spanned 18 years, in early November 2025.
The legal battle followed Makate’s claim that he was promised compensation for pitching an idea that Vodacom’s product team developed into Please Call Me.
While neither party disclosed the settlement amount, it was possible to estimate a ballpark figure by comparing Vodacom’s estimated earnings disclosures before and after the settlement.
Based on this, Makate received between R353 million and R748 million from Vodacom, which would make Black Rock’s before-tax claim between R141.2 million and R299.2 million.
In court papers, Elsdon said Black Rock had raised and applied the initial R4.39 million in funding for Makate’s case against South Africa’s largest mobile network operator.
“Of this, R2.4 million was paid to Stemela & Lubbe in respect of fees disbursements, with the balance applied to counsel, expert witnesses, and litigation expenses,” he said.
He also alleged that Stemela & Lubbe had plotted to sideline him, much as Makate’s initial backer, the late Chris Schoeman, had alleged.
He further alleged that Schoeman, who brought Elsdon into the case, and Wilna Lubbe of Stemela & Lubbe, were the primary protagonists trying to sideline him.
According to Elsdon, Lubbe only sidelined Schoeman after he had already been forced out. He believes the initial scheme was to sideline him, but it backfired on Schoeman.
“Schoeman, shortly before his death, confided in me that he was in fact the author of the letters dispatched on the Hahn & Hahn letterhead, which were sent to himself,” said Elsdon.
“It was therefore a coordinated attempt to try and sideline me and the original funders from the litigation.”
Lubbe previously denied allegations of a conspiracy to push out Makate’s original funders and vowed to challenge the claims against them.
In Makate’s affidavit responding to Elsdon’s accusations, he stated that Schoeman’s deathbed confession was hearsay at best and inaccurate.
Makate said he took advice from Reinard Michau, one of his team’s associates, on whom to appoint to terminate the original funding agreement.
Makate said he alone instructed Hahn & Hahn and no one else. He also said he made an affidavit to this effect in 2016, which Elsdon is aware of.
“I am not sure on what basis he can say that it was Schoeman who instructed Hahn & Hahn,” said Makate.
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